Gilat Satellite Networks (NASDAQ:GILT) & Iridium Communications (NASDAQ:IRDM) Head-To-Head Review

Gilat Satellite Networks (NASDAQ:GILT) and Iridium Communications (NASDAQ:IRDM) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Gilat Satellite Networks has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Iridium Communications has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Gilat Satellite Networks and Iridium Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilat Satellite Networks	0	0	2	0	3.00
Iridium Communications	0	1	5	1	3.00

Gilat Satellite Networks presently has a consensus price target of $11.00, suggesting a potential upside of 24.29%. Iridium Communications has a consensus price target of $34.3333, suggesting a potential upside of 37.61%. Given Iridium Communications’ higher possible upside, analysts clearly believe Iridium Communications is more favorable than Gilat Satellite Networks.

Profitability

This table compares Gilat Satellite Networks and Iridium Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilat Satellite Networks	6.41%	10.05%	6.02%
Iridium Communications	13.20%	20.28%	4.27%

Valuation & Earnings

This table compares Gilat Satellite Networks and Iridium Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilat Satellite Networks	$305.45 million	1.66	$24.85 million	$0.39	22.69
Iridium Communications	$830.68 million	3.19	$112.78 million	$0.99	25.20

Iridium Communications has higher revenue and earnings than Gilat Satellite Networks. Gilat Satellite Networks is trading at a lower price-to-earnings ratio than Iridium Communications, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

35.7% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 84.4% of Iridium Communications shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by insiders. Comparatively, 2.4% of Iridium Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Iridium Communications beats Gilat Satellite Networks on 13 of the 14 factors compared between the two stocks.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel, the United States, Peru, and internationally. It operates in three segments: Satellite Networks, Integrated Solutions, and Network Infrastructure and Services. Its portfolio consists of cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, and defense ground systems and field services. The company also develops, manufactures, and supplies products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems, and solutions, including airborne, ground-mobile satellite systems and solutions; and provides terrestrial, including fiber optic and wireless network, and satellite network construction and operation services. In addition, it provides turnkey integrated solutions, including managed satellite network services, network planning and optimization, remote network operation, call center support, hub and field operations, and communication networks construction and installation services; connectivity services, internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, Mobile Network Operators, and system integrators that use satellite communications to serve enterprise, social inclusion solutions, government and residential users, and defense and homeland security organizations, as well as directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.

About Iridium Communications

Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides hosted payload and other data services, such as satellite time and location services; and inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and other government agencies, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the United States government's dedicated gateway. Further, it provides satellite handsets, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. is headquartered in McLean, Virginia.