Reviewing Planet Labs PBC (NYSE:PL) and Globalstar (NASDAQ:GSAT)

Globalstar (NASDAQ:GSAT) and Planet Labs PBC (NYSE:PL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares Globalstar and Planet Labs PBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Globalstar	-29.65%	-8.96%	-2.51%
Planet Labs PBC	-42.58%	-23.36%	-16.51%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Globalstar and Planet Labs PBC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalstar	0	0	0	0	0.00
Planet Labs PBC	0	1	9	0	2.90

Planet Labs PBC has a consensus target price of $6.60, indicating a potential upside of 21.55%. Given Planet Labs PBC’s stronger consensus rating and higher possible upside, analysts clearly believe Planet Labs PBC is more favorable than Globalstar.

Institutional and Insider Ownership

18.9% of Globalstar shares are held by institutional investors. Comparatively, 41.7% of Planet Labs PBC shares are held by institutional investors. 61.0% of Globalstar shares are held by company insiders. Comparatively, 18.9% of Planet Labs PBC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Globalstar has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Planet Labs PBC has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Valuation & Earnings

This table compares Globalstar and Planet Labs PBC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globalstar	$250.35 million	11.74	-$63.16 million	($0.73)	-31.79
Planet Labs PBC	$244.35 million	6.74	-$123.20 million	($0.36)	-15.08

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

About Globalstar

Globalstar, Inc. provides mobile satellite services worldwide. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment. It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device. In addition, the company offers commercial Internet of Things one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets. Further, it sells wholesale minutes to independent gateway operators (IGOs); and provides engineering services, such as hardware and software designs to develop specific applications; and installation of gateways and antennas. The company distributes its products directly, as well as through independent agents, dealers and resellers, retailers, IGOs, and sales force and e-commerce Website. As of December 31, 2020, it had approximately 745,000 subscribers. The company primarily serves recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, and forestry markets. Globalstar, Inc. has a strategic alliance with XCOM Labs to jointly commercialize XCOM’s capacity-multiplying technology with Globalstar’s Band n53 for 5G deployments in the United States and other countries where Globalstar has terrestrial rights. The company was founded in 1993 and is headquartered in Covington, Louisiana.

About Planet Labs PBC

Planet Labs PBC engages in the design, construction, and launch constellations of satellites with the intent of providing high cadence geospatial data delivered to customers through an online platform worldwide. The company’s platform offers planet monitoring, basemap, tasking, apps, and application programming interfaces, as well as analytics and planetary variables. It serves agriculture, mapping, energy, forestry, finance and insurance companies, and government agencies. The company was founded in 2010 and is headquartered in San Francisco, California.