Critical Review: ORBCOMM (NASDAQ:ORBC) versus StarTronix International (OTCMKTS:STNX)

ORBCOMM (NASDAQ:ORBC) and StarTronix International (OTCMKTS:STNX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

68.3% of ORBCOMM shares are held by institutional investors. 6.7% of ORBCOMM shares are held by insiders. Comparatively, 9.3% of StarTronix International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares ORBCOMM and StarTronix International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -7.71% -8.66% -3.49%
StarTronix International N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ORBCOMM and StarTronix International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 1 1 3.50
StarTronix International 0 0 0 0 N/A

ORBCOMM presently has a consensus price target of $10.25, suggesting a potential upside of 34.34%. Given ORBCOMM’s higher possible upside, equities analysts plainly believe ORBCOMM is more favorable than StarTronix International.

Earnings and Valuation

This table compares ORBCOMM and StarTronix International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ORBCOMM $272.01 million 2.19 -$18.42 million ($0.23) -33.17
StarTronix International N/A N/A N/A N/A N/A

StarTronix International has lower revenue, but higher earnings than ORBCOMM.

Summary

ORBCOMM beats StarTronix International on 5 of the 9 factors compared between the two stocks.

About ORBCOMM

ORBCOMM Inc. provides Internet of Things solutions in the United States, South America, Japan, Europe, and internationally. The company offers network connectivity, devices, device management, and web reporting applications that are designed to track, monitor, control, and enhance security for various assets, such as trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators, oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters in transportation and supply chain, heavy equipment, fixed asset monitoring, and maritime industries, as well as for governments. It also provides satellite automatic identification service data services for vessel navigation and to enhance maritime safety for government and commercial customers; and vehicle fleet management, as well as in-cab and fleet vehicle solutions using various network platforms, including its own constellation of low-Earth orbit satellites and accompanying ground infrastructure, as well as terrestrial-based cellular communication services through reseller agreements with various cellular wireless providers. In addition, the company offers customer solutions utilizing additional satellite network service options through service agreements with third party mobile satellite providers; and resells service using the two-way Inmarsat plc satellite network to provide higher bandwidth. It markets and sells its products and services directly to original equipment manufacturers, government customers, and end-users, as well as indirectly through market channel partners and affiliates. ORBCOMM Inc. was founded in 2001 and is headquartered in Rochelle Park, New Jersey.

About StarTronix International

StarTronix International, Inc. develops an integrated computing and communications hardware and software platform for the home PC and the small office home office (SOHO) marketplace. Its StarScreen System is an Internet platform that is used by the company’s direct marketing Internet resellers and their customers to provide one-button push access to the Internet for the user. It integrates a desktop computer and either fixed or wireless telephones and intelligent handsets into a complete computing and communications solution for the home PC and small business user. This system features a preorganized Internet menu system enabling on-line banking, bill paying, e-mail, home shopping, video conferencing, and other value added services. The company was formed and incorporated in Delaware as a wholly owned subsidiary of Gold Express Communications, Inc. and later the company absorbed Gold Express. StarTronix was previously engaged in the mining and natural resources business.

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