Analyzing KVH Industries (NASDAQ:KVHI) & Iridium World Communications (OTCMKTS:IRIDQ)

Iridium World Communications (OTCMKTS:IRIDQ) and KVH Industries (NASDAQ:KVHI) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

73.7% of KVH Industries shares are owned by institutional investors. 4.1% of Iridium World Communications shares are owned by company insiders. Comparatively, 21.4% of KVH Industries shares are owned by company 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.

Profitability

This table compares Iridium World Communications and KVH Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iridium World Communications	N/A	N/A	N/A
KVH Industries	-4.31%	-0.80%	-0.70%

Volatility & Risk

Iridium World Communications has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Earnings and Valuation

This table compares Iridium World Communications and KVH Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iridium World Communications	N/A	N/A	N/A	N/A	N/A
KVH Industries	$111.01 million	1.71	-$7.38 million	($0.26)	-37.38

Iridium World Communications has higher earnings, but lower revenue than KVH Industries.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Iridium World Communications and KVH Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iridium World Communications	0	0	0	0	0.00
KVH Industries	1	0	0	0	1.00

Given Iridium World Communications’ higher possible upside, analysts plainly believe Iridium World Communications is more favorable than KVH Industries.

Summary

KVH Industries beats Iridium World Communications on 5 of the 9 factors compared between the two stocks.

About Iridium World Communications

In August 1999, Iridium World Communications Ltd. filed a voluntary petition under Chapter 11 of the United States Bankruptcy Court, and operated as a debtor-in-possession. Iridium World Communications, Ltd. was engaged in the ownership and participation in the management of Iridium LLC, its parent company, which owned Iridium Operating LLC (Iridium), as of March 31, 1999. Iridium operated as a global wireless telecommunications company. It enabled its customers to make and receive phone calls, and receive pages virtually anywhere in the world. The company was founded in 1991 and is based in Hamilton, Bermuda.

About KVH Industries

KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.