NextNav (NN) and The Competition Critical Survey

NextNav (NASDAQ:NN) is one of 955 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare NextNav to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares NextNav and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextNav	-3,232.19%	-211.25%	-25.35%
NextNav Competitors	-619.02%	18.31%	-8.93%

Analyst Ratings

This is a breakdown of recent ratings and target prices for NextNav and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextNav	1	1	4	1	2.71
NextNav Competitors	5710	21462	44701	1489	2.57

NextNav presently has a consensus target price of $32.33, suggesting a potential upside of 167.66%. As a group, “Software” companies have a potential upside of 26.48%. Given NextNav’s stronger consensus rating and higher possible upside, research analysts clearly believe NextNav is more favorable than its peers.

Institutional and Insider Ownership

79.2% of NextNav shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 7.8% of NextNav shares are owned by insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NextNav and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NextNav	$4.57 million	-$189.25 million	-12.45
NextNav Competitors	$1.80 billion	$385.05 million	112.30

NextNav’s peers have higher revenue and earnings than NextNav. NextNav is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

NextNav has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, NextNav’s peers have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Summary

NextNav peers beat NextNav on 8 of the 12 factors compared.

NextNav Company Profile

NextNav Inc. provides next generation positioning, navigation, and timing (PNT) solutions in the United States. It offers Pinnacle, a dedicated vertical positioning network to cover entire metropolitan areas including devices equipped with a barometric pressure sensor with the highest quality wide-area altitude service. The company also provides TerraPoiNT, an 3D PNT system, provides positioning, navigation and timing services provided by GPS through a land-based GPS satellite constellation. It serves Wi-Fi, telecom, public safety, gaming and location apps, and critical infrastructure applications. NextNav Inc. was founded in 2007 and is headquartered in McLean, Virginia.