Globalstar, Inc. (GSAT) vs Telefonica Brasil S.A. (VIV)

Globalstar, Inc. and Telefonica Brasil S.A. are both Telecom Services companies. Telefonica Brasil S.A. is the larger, with a market value of $18.7B against $10.7B — 1.7× the size. Globalstar, Inc. has negative trailing earnings, so its P/E is not meaningful; Telefonica Brasil S.A. trades at 23.3×. Telefonica Brasil S.A. grew revenue faster over the last twelve months: 16.4% against 7.66%. Telefonica Brasil S.A. has the higher net margin (10.6% vs −23.2%) and the higher return on invested capital (8.17% vs 3.41%). Across the 21 metrics below, Telefonica Brasil S.A. leads on 15 and Globalstar, Inc. on 6.

Valuation

Metric GSAT VIV Telecom Services median
P/E n/m 23.26 13.27
P/S 38.11 3.17 0.95
P/B 36.55 2.85 1.47
Price to free cash flow 19.66 16.61 8.72
EV/EBITDA 117.62 7.99 6.85
EV/Sales 37.93 3.36 1.87
Earnings yield (0.62%) 4.30% 1.66%
Free cash flow yield 5.09% 6.02% 5.53%

Profitability

Metric GSAT VIV Telecom Services median
Gross margin 62.25% 45.03% 51.26%
Operating margin 4.70% 17.00% 7.62%
Net margin (23.19%) 10.59% 4.22%
Free cash flow margin 201.94% 19.09% 4.73%
Return on equity (19.92%) 9.89% 5.80%
Return on assets (2.99%) 5.17% 0.00%
Return on invested capital 3.41% 8.17% 3.41%

Growth

Metric GSAT VIV Telecom Services median
Revenue growth (TTM) 7.66% 16.40% 3.31%
EPS growth (last fiscal year) 74.58% (45.52%) —
Revenue growth, 5-year CAGR 16.27% 4.99% 1.50%
Net income growth, 5-year CAGR 0.00% 3.60% 0.00%

Health

Metric GSAT VIV Telecom Services median
Debt to equity 1.23 0.30 0.63
Current ratio 1.55 0.95 1.13
Net debt to EBITDA 0.38 0.53 1.86

Dividend

Metric GSAT VIV Telecom Services median
Dividend yield — 5.77% 4.06%
Payout ratio 0.00 0.83 0.00

Size

Metric GSAT VIV Telecom Services median
Market cap 10.68b 18.68b 3.06b

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