Iridium Communications Inc (IRDM) vs Lumen Technologies, Inc. (LUMN)

Iridium Communications Inc and Lumen Technologies, Inc. are both Telecom Services companies. Lumen Technologies, Inc. is the larger, with a market value of $6.0B against $5.1B — 1.2× the size. Lumen Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Iridium Communications Inc trades at 55.4×. Iridium Communications Inc grew revenue faster over the last twelve months: 3.10% against −7.74%. Iridium Communications Inc has the higher net margin (10.6% vs −8.65%) and the higher return on invested capital (6.40% vs 1.26%). Both pay a dividend; Lumen Technologies, Inc. yields more (15.5% vs 1.01%). Across the 20 metrics below, Iridium Communications Inc leads on 12 and Lumen Technologies, Inc. on 8.

Valuation

Metric IRDM LUMN Telecom Services median
P/E 55.40 n/m 13.27
P/S 5.90 0.48 0.95
P/B 11.04 n/m 1.47
Price to free cash flow 18.09 6.56 8.72
EV/EBITDA 15.94 5.93 6.85
EV/Sales 7.68 1.44 1.87
Earnings yield 1.81% (17.90%) 1.66%
Free cash flow yield 5.53% 15.24% 5.53%

Profitability

Metric IRDM LUMN Telecom Services median
Gross margin 71.85% 47.79% 51.26%
Operating margin 23.76% 1.67% 7.62%
Net margin 10.55% (8.65%) 4.22%
Free cash flow margin 32.61% 7.39% 4.73%
Return on equity 19.72% 98.32% 5.80%
Return on assets 3.63% (3.21%) 0.00%
Return on invested capital 6.40% 1.26% 3.41%

Growth

Metric IRDM LUMN Telecom Services median
Revenue growth (TTM) 3.10% (7.74%) 3.31%
EPS growth (last fiscal year) 12.77% (2,816.67%) —
Revenue growth, 5-year CAGR 8.36% (9.75%) 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IRDM LUMN Telecom Services median
Debt to equity 3.73 (8.87) 0.63
Current ratio 2.78 0.96 1.13
Net debt to EBITDA 3.71 8.49 1.86

Dividend

Metric IRDM LUMN Telecom Services median
Dividend yield 1.01% 15.50% 4.06%
Payout ratio 0.00 0.50 0.00

Size

Metric IRDM LUMN Telecom Services median
Market cap 5.11b 6.04b 3.06b

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