Critical Survey: Intelsat (I) and DigitalGlobe (DGI)

Intelsat (NYSE: I) and DigitalGlobe (NYSE:DGI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Intelsat and DigitalGlobe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intelsat -9.78% N/A -1.89%
DigitalGlobe N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations for Intelsat and DigitalGlobe, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intelsat 1 5 0 0 1.83
DigitalGlobe 0 1 0 0 2.00

Intelsat currently has a consensus target price of $4.50, suggesting a potential downside of 67.08%. DigitalGlobe has a consensus target price of $34.00, suggesting a potential downside of 1.16%. Given DigitalGlobe’s stronger consensus rating and higher probable upside, analysts plainly believe DigitalGlobe is more favorable than Intelsat.

Volatility & Risk

Intelsat has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, DigitalGlobe has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Valuation and Earnings

This table compares Intelsat and DigitalGlobe’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intelsat $2.15 billion 0.76 -$178.72 million ($1.70) -8.04
DigitalGlobe $725.40 million 2.95 $26.50 million N/A N/A

DigitalGlobe has lower revenue, but higher earnings than Intelsat.

Insider and Institutional Ownership

36.9% of Intelsat shares are owned by institutional investors. Comparatively, 0.1% of DigitalGlobe shares are owned by institutional investors. 2.3% of DigitalGlobe shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

DigitalGlobe beats Intelsat on 8 of the 10 factors compared between the two stocks.

Intelsat Company Profile

Intelsat S.A., through its subsidiaries, provides satellite communications services worldwide. The company offers a range of communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations, and Internet service providers; and commercial satellite communication services to the U.S. government and other military organizations and their contractors. It provides various on-network services, including transponder services; managed services that combine satellite capacity, teleport facilities, satellite communications hardware, and other ground facilities to provide managed and monitored broadband, trunking, video, and private network services to customers; and channel services primarily used for point-to-point bilateral services to telecommunications providers. The company also offers off-network and other services comprising transponder, mobile satellite, and other services. In addition, it offers satellite-related consulting and technical services that include the lifecycle of satellite operations and related infrastructure, from satellite and launch vehicle procurement through telemetry and commanding services, and related equipment sale services to other satellite operators. The company was founded in 1964 and is headquartered in Luxembourg, Luxembourg. Intelsat S.A. is a subsidiary of Serafina S.A.

DigitalGlobe Company Profile

DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.

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