Iridium Communications (IRDM) Competitors

Iridium Communications (NASDAQ:IRDM) and Lumentum (NASDAQ:LITE) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, community ranking, valuation, risk, analyst recommendations, media sentiment, earnings and profitability.

Does the media favor IRDM or LITE?

In the previous week, Lumentum had 1 more articles in the media than Iridium Communications. MarketBeat recorded 5 mentions for Lumentum and 4 mentions for Iridium Communications. Lumentum's average media sentiment score of 1.13 beat Iridium Communications' score of 1.11 indicating that Lumentum is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Iridium Communications	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lumentum	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of IRDM or LITE?

84.4% of Iridium Communications shares are owned by institutional investors. Comparatively, 94.1% of Lumentum shares are owned by institutional investors. 2.0% of Iridium Communications shares are owned by insiders. Comparatively, 0.6% of Lumentum shares are owned by 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.

Is IRDM or LITE more profitable?

Iridium Communications has a net margin of 3.20% compared to Lumentum's net margin of -24.91%. Iridium Communications' return on equity of 2.76% beat Lumentum's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Iridium Communications	3.20%	2.76%	0.93%
Lumentum	-24.91%	-1.72%	-0.49%

Which has more volatility & risk, IRDM or LITE?

Iridium Communications has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Lumentum has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Do analysts prefer IRDM or LITE?

Iridium Communications currently has a consensus target price of $44.75, suggesting a potential upside of 42.15%. Lumentum has a consensus target price of $51.83, suggesting a potential upside of 12.56%. Given Iridium Communications' stronger consensus rating and higher probable upside, research analysts clearly believe Iridium Communications is more favorable than Lumentum.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iridium Communications	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.80
Lumentum	2 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.42

Does the MarketBeat Community believe in IRDM or LITE?

Lumentum received 407 more outperform votes than Iridium Communications when rated by MarketBeat users. Likewise, 71.89% of users gave Lumentum an outperform vote while only 58.76% of users gave Iridium Communications an outperform vote.

Company	Underperform	Outperform
Iridium Communications	Outperform Votes 483 58.76%	Underperform Votes 339 41.24%
Lumentum	Outperform Votes 890 71.89%	Underperform Votes 348 28.11%

Which has preferable earnings and valuation, IRDM or LITE?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iridium Communications	$790.72M	4.83	$15.41M	$0.21	149.90
Lumentum	$1.77B	1.76	-$131.60M	-$5.25	-8.77

Summary

Iridium Communications beats Lumentum on 11 of the 19 factors compared between the two stocks.