Head to Head Analysis: Garmin (GRMN) vs. Telenav (TNAV)

Garmin (NASDAQ: GRMN) and Telenav (NASDAQ:TNAV) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Garmin and Telenav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Garmin 18.57% 15.66% 12.02%
Telenav -58.01% -83.65% -25.82%

Valuation and Earnings

This table compares Garmin and Telenav’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Garmin $3.09 billion 3.68 $694.95 million $2.94 20.50
Telenav $169.58 million 1.42 -$47.26 million ($1.09) -4.95

Garmin has higher revenue and earnings than Telenav. Telenav is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Garmin and Telenav, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Garmin 0 5 2 0 2.29
Telenav 0 0 3 0 3.00

Garmin presently has a consensus target price of $58.75, indicating a potential downside of 2.54%. Telenav has a consensus target price of $11.17, indicating a potential upside of 106.79%. Given Telenav’s stronger consensus rating and higher possible upside, analysts plainly believe Telenav is more favorable than Garmin.

Insider & Institutional Ownership

40.1% of Garmin shares are owned by institutional investors. Comparatively, 52.8% of Telenav shares are owned by institutional investors. 17.9% of Garmin shares are owned by insiders. Comparatively, 24.7% of Telenav shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Garmin pays an annual dividend of $2.04 per share and has a dividend yield of 3.4%. Telenav does not pay a dividend. Garmin pays out 69.4% of its earnings in the form of a dividend.

Volatility and Risk

Garmin has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Telenav has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Summary

Garmin beats Telenav on 9 of the 15 factors compared between the two stocks.

Garmin Company Profile

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. The Auto segment offers personal navigation devices; infotainment systems; and action cameras, as well as mobile applications under the Garmin and NAVIGON names. The Aviation segment provides navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, datalink weather, in-cockpit and cloud connectivity, voice controls, and other products and services; wearables, portables, apps, training, simulation, and aviation data services; and traffic collision avoidance, engine information, and terrain awareness and warning systems. This segment also offers controller-pilot data link, a suite of automatic dependent surveillance broadcast solutions. The Marine segment provides chartplotters and multi-function displays, Cartography Products, fish finders, sounders, autopilot systems, radars, compliant instrument displays, VHF communication radios, handhelds and wearable devices, sailing products, and entertainment products. The Outdoor segment offers outdoor handhelds, wearable devices, golf devices, and dog tracking and training/pet obedience devices. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and Connect IQ and activity tracking devices, as well as Garmin Connect and Garmin Connect Mobile, which are Web and mobile platforms for users to track and analyze their fitness and wellness data. The company sells its global positioning system receivers and accessories to retail outlets; and aviation products to aviation dealers and aircraft manufacturers through a network of independent dealers and distributors. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland.

Telenav Company Profile

Telenav, Inc., together with its subsidiaries provides connected car and location-based platform services in the United States and internationally. The company operates through three segments: Automotive, Advertising, and Mobile Navigation. It offers automotive navigation services, including on-board solutions, which consist of software, map, and points of interest data loaded in vehicles that provide voice-guided turn by turn navigation displayed on the vehicle screen; and mobile phone-based wireless connectivity and brought-in navigation services. The company also provides display and location-based advertising services; and voice-guided, real-time, turn by turn, and mobile navigation services under various brand names, including Scout GPS Navigation, as well as under wireless carrier brands. Its customers include wireless carriers, automobile manufacturers, original equipment manufacturers, advertisers, advertising agencies, and end users. The company distributes its services primarily through wireless carrier partners. Telenav, Inc. is headquartered in Santa Clara, California.

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