DigitalGlobe (DGI) versus Its Competitors Critical Analysis
DigitalGlobe (NYSE: DGI) is one of 48 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare DigitalGlobe to related businesses based on the strength of its profitability, risk, earnings, valuation, analyst recommendations, institutional ownership and dividends.
Insider & Institutional Ownership
95.5% of DigitalGlobe shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 2.3% of DigitalGlobe shares are owned by insiders. Comparatively, 6.8% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares DigitalGlobe and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares DigitalGlobe and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|DigitalGlobe||$725.40 million||$26.50 million||1,720.86|
|DigitalGlobe Competitors||$8.69 billion||$780.87 million||176.87|
DigitalGlobe’s peers have higher revenue and earnings than DigitalGlobe. DigitalGlobe is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings and recommmendations for DigitalGlobe and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DigitalGlobe currently has a consensus target price of $36.38, suggesting a potential upside of 5.74%. As a group, “Aerospace & Defense” companies have a potential upside of 15.84%. Given DigitalGlobe’s peers stronger consensus rating and higher probable upside, analysts plainly believe DigitalGlobe has less favorable growth aspects than its peers.
Volatility and Risk
DigitalGlobe has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, DigitalGlobe’s peers have a beta of 1.08, meaning that their average share price is 8% more volatile than the S&P 500.
DigitalGlobe peers beat DigitalGlobe on 10 of the 13 factors compared.
DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.
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