Critical Review: Iridium Communications (NASDAQ:IRDM) versus 5Barz International (NASDAQ:BARZ)

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Iridium Communications (NASDAQ:IRDM) and 5Barz International (OTCMKTS:BARZ) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Risk and Volatility

Iridium Communications has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, 5Barz International has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Iridium Communications and 5Barz International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iridium Communications -7.98% -2.14% -0.84%
5Barz International N/A N/A N/A

Valuation and Earnings

This table compares Iridium Communications and 5Barz International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iridium Communications $523.01 million 4.64 -$13.38 million ($0.14) -153.00
5Barz International N/A N/A -$4.07 million N/A N/A

5Barz International has lower revenue, but higher earnings than Iridium Communications.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Iridium Communications and 5Barz International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iridium Communications 1 1 2 0 2.25
5Barz International 0 0 0 0 N/A

Iridium Communications presently has a consensus price target of $23.33, suggesting a potential upside of 8.93%. Given Iridium Communications’ higher probable upside, equities analysts clearly believe Iridium Communications is more favorable than 5Barz International.

Institutional & Insider Ownership

84.4% of Iridium Communications shares are held by institutional investors. Comparatively, 0.1% of 5Barz International shares are held by institutional investors. 5.0% of Iridium Communications shares are held by insiders. Comparatively, 20.7% of 5Barz International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Iridium Communications Company Profile

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; submarine communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.

5Barz International Company Profile

5BARz International, Inc. designs, manufactures, and sells a line of cellular network infrastructure devices for use in the office and home in India and internationally. It offers 5BARz Network Extender, a plug and play device strengthens weak cellular signals to deliver high quality signals for voice, data, and video reception on cell phones and other cellular equipped devices; and 5BARz ROVR, a smart Wifi device, as well as 5BARz Road Warrior products. The company was formerly known as Bio-Stuff Inc. and changed its name to 5Barz International, Inc. in December 2010. 5BARz International, Inc. was founded in 2008 and is headquartered in Reno, Nevada.

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