pdvWireless (NASDAQ: PDVW) and RR Media (NASDAQ:RRM) are both telecommunications services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

92.0% of pdvWireless shares are held by institutional investors. 10.9% of pdvWireless shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for pdvWireless and RR Media, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
pdvWireless 0 0 1 0 3.00
RR Media 0 0 0 0 N/A

pdvWireless currently has a consensus price target of $59.00, indicating a potential upside of 79.33%. Given pdvWireless’ higher possible upside, analysts clearly believe pdvWireless is more favorable than RR Media.

Profitability

This table compares pdvWireless and RR Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
pdvWireless -670.81% -16.24% -15.14%
RR Media 3.49% 5.83% 3.07%

Earnings & Valuation

This table compares pdvWireless and RR Media’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
pdvWireless $4.79 million 99.18 -$39.18 million ($2.59) -12.70
RR Media N/A N/A N/A $0.46 28.37

RR Media has lower revenue, but higher earnings than pdvWireless. pdvWireless is trading at a lower price-to-earnings ratio than RR Media, indicating that it is currently the more affordable of the two stocks.

Dividends

RR Media pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. pdvWireless does not pay a dividend. RR Media pays out 60.9% of its earnings in the form of a dividend.

About pdvWireless

pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.

About RR Media

MX1 Ltd, formerly RR Media Ltd, is an Israel-based global media services provider. It is a media globalize company that works with media businesses to transform content into a viewer experience for a global audience. MX1 Ltd offers a range of content management, delivery and digital media services. It distributes more than 1000 television (TV) channels, manages the play out of more than 400 channels and delivers syndicated content to more than 120 subscription Video on Demand (VOD) platforms. The Company has offices worldwide and operates global media centers, enabling customers to reach people around the world. MX1 Ltd is a wholly-owned subsidiary of SES, Euronext Paris and Luxembourg Stock Exchange: SESG.

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