Globalstar, Inc. (GSAT) vs Millicom International Cellular SA (TIGO)

Globalstar, Inc. and Millicom International Cellular SA are both Telecom Services companies. Millicom International Cellular SA is the larger, with a market value of $15.3B against $10.7B — 1.4× the size. Globalstar, Inc. has negative trailing earnings, so its P/E is not meaningful; Millicom International Cellular SA trades at 23.3×. Millicom International Cellular SA grew revenue faster over the last twelve months: 29.6% against 7.66%. Millicom International Cellular SA has the higher net margin (9.17% vs −23.2%) and the higher return on invested capital (10.5% vs 3.41%). Across the 20 metrics below, Millicom International Cellular SA leads on 15 and Globalstar, Inc. on 5.

Valuation

Metric GSAT TIGO Telecom Services median
P/E n/m 23.27 13.27
P/S 38.11 2.14 0.95
P/B 36.55 6.23 1.47
Price to free cash flow 19.66 12.59 8.72
EV/EBITDA 117.62 6.85 6.85
EV/Sales 37.93 3.23 1.87
Earnings yield (0.62%) 4.30% 1.66%
Free cash flow yield 5.09% 7.94% 5.53%

Profitability

Metric GSAT TIGO Telecom Services median
Gross margin 62.25% 76.53% 51.26%
Operating margin 4.70% 24.02% 7.62%
Net margin (23.19%) 9.17% 4.22%
Free cash flow margin 201.94% 17.03% 4.73%
Return on equity (19.92%) 22.20% 5.80%
Return on assets (2.99%) 3.73% 0.00%
Return on invested capital 3.41% 10.52% 3.41%

Growth

Metric GSAT TIGO Telecom Services median
Revenue growth (TTM) 7.66% 29.57% 3.31%
EPS growth (last fiscal year) 74.58% 436.30% —
Revenue growth, 5-year CAGR 16.27% 6.89% 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GSAT TIGO Telecom Services median
Debt to equity 1.23 3.51 0.63
Current ratio 1.55 0.53 1.13
Net debt to EBITDA 0.38 1.81 1.86

Dividend

Metric GSAT TIGO Telecom Services median
Dividend yield — 1.68% 4.06%
Payout ratio 0.00 0.00 0.00

Size

Metric GSAT TIGO Telecom Services median
Market cap 10.68b 15.29b 3.06b

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