Critical Survey: Cellcom Israel (OTCMKTS:CELJF) and KVH Industries (NASDAQ:KVHI)

KVH Industries (NASDAQ:KVHI) and Cellcom Israel (OTCMKTS:CELJF) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

73.7% of KVH Industries shares are held by institutional investors. 21.4% of KVH Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for KVH Industries and Cellcom Israel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KVH Industries	1	0	0	0	1.00
Cellcom Israel	0	0	0	0	0.00

Profitability

This table compares KVH Industries and Cellcom Israel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KVH Industries	-4.68%	-0.76%	-0.65%
Cellcom Israel	N/A	N/A	N/A

Earnings and Valuation

This table compares KVH Industries and Cellcom Israel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KVH Industries	$111.01 million	1.41	-$7.38 million	($0.30)	-26.77
Cellcom Israel	$1.20 billion	1.43	$46.74 million	$0.42	24.96

Cellcom Israel has higher revenue and earnings than KVH Industries. KVH Industries is trading at a lower price-to-earnings ratio than Cellcom Israel, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

KVH Industries has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

Cellcom Israel beats KVH Industries on 9 of the 12 factors compared between the two stocks.

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.

About Cellcom Israel

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.