ORBCOMM (NASDAQ: ORBC) and China Telecom Corp (NYSE:CHA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Volatility & Risk
ORBCOMM has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, China Telecom Corp has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Institutional & Insider Ownership
78.5% of ORBCOMM shares are held by institutional investors. Comparatively, 0.4% of China Telecom Corp shares are held by institutional investors. 9.5% of ORBCOMM shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares ORBCOMM and China Telecom Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Telecom Corp||N/A||N/A||N/A|
China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.4%. ORBCOMM does not pay a dividend.
This is a summary of current recommendations and price targets for ORBCOMM and China Telecom Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Telecom Corp||0||0||5||0||3.00|
ORBCOMM presently has a consensus target price of $12.90, suggesting a potential upside of 19.56%. Given ORBCOMM’s higher possible upside, equities research analysts clearly believe ORBCOMM is more favorable than China Telecom Corp.
Earnings and Valuation
This table compares ORBCOMM and China Telecom Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ORBCOMM||$202.00 million||3.93||$36.94 million||($0.45)||-23.98|
|China Telecom Corp||$53.84 billion||0.77||$13.67 billion||N/A||N/A|
China Telecom Corp has higher revenue and earnings than ORBCOMM.
ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.
About China Telecom Corp
China Telecom Corporation Limited is an investment holding company principally engaged in telecommunications and related businesses. The Company provides integrated information services, including wireline and mobile telecommunications services, Internet access services, information services and other value-added telecommunications services. The Company mainly operates its business in domestic market.
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