Critical Survey: Inmarsat (OTCMKTS:IMASF) versus Verizon Communications (NYSE:VZ)

Inmarsat (OTCMKTS:IMASF) and Verizon Communications (NYSE:VZ) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Profitability

This table compares Inmarsat and Verizon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inmarsat	N/A	N/A	N/A
Verizon Communications	11.64%	19.48%	5.07%

Institutional and Insider Ownership

62.1% of Verizon Communications shares are owned by institutional investors. 0.0% of Verizon Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Inmarsat and Verizon Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inmarsat	N/A	N/A	N/A	N/A	N/A
Verizon Communications	$138.90 billion	1.45	$17.17 billion	$3.84	12.60

Verizon Communications has higher revenue and earnings than Inmarsat.

Analyst Ratings

This is a breakdown of recent ratings for Inmarsat and Verizon Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inmarsat	0	0	0	0	0.00
Verizon Communications	0	12	9	0	2.43

Verizon Communications has a consensus price target of $50.84, indicating a potential upside of 5.10%. Given Verizon Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Verizon Communications is more favorable than Inmarsat.

Summary

Verizon Communications beats Inmarsat on 9 of the 9 factors compared between the two stocks.

About Inmarsat

Inmarsat plc provides mobile satellite communications services on land, at sea, and in the air worldwide. The company operates through five segments: Maritime, US Government, Enterprise, Aviation, and Global Government. It offers voice and data broadband services; global maritime distress and safety system services; mobile and fixed voice services; a portfolio of machine-to-machine services that provide two-way data connectivity for messaging, tracking, and monitoring of fixed or mobile assets; maritime satellite services, including very small aperture terminals and television receive only antenna services; and Global Xpress, a high-speed broadband service that offer seamless connectivity for advanced data services on land, at sea, and in the air. The company also offers in-flight voice, data, safety, and cabin connectivity services for business and commercial air transport. It connects to its fleet of 13 satellites using a range of equipment, including global handheld satellite phones and notebook-size broadband Internet devices, as well as specialist terminals and antennas fitted to ships, aircraft, and road vehicles. It serves governments, airlines, the broadcast media industry, the oil and gas industry, the mining and construction industry, and humanitarian aid agencies. The company was founded in 1979 and is headquartered in London, the United Kingdom.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.