Globalstar, Inc. GSAT and Iridium Communications Inc. IRDM operate in the satellite communications industry, rapidly emerging as a key component of global connectivity. Satellite services are helping to expand connectivity in remote regions where terrestrial networks cannot reach, thereby bridging the digital divide.
According to a Grand View Research report, the global satellite communication market is expected to witness a CAGR of 10.2% from 2025 to 2030, reaching $159.6 billion.
This uptrend in spending benefits both GSAT and IRDM. However, their strategies, partnerships and execution capabilities reveal key differences that are crucial for investors to understand. So, if an investor wants to make a smart buy in the satellite space, which stock stands out?
Given this backdrop, let’s scrutinize closely to find out which of these two stocks currently holds the edge, and more importantly, which might be the smarter bet now.
Globalstar operates a Low Earth Orbit (“LEO”) satellite constellation infrastructure to deliver mobile satellite services (MSS) and voice and data communications services to customers across various sectors, including retail, business and governments. Its terrestrial spectrum consists of Band 53 and its 5G variant, n53, and XCOM RAN. GSAT’s globally harmonized and licensed spectrum is a great asset for the company. On the last earnings call, management highlighted that owning proprietary spectrum is the key differentiator in the satellite communications space, as it provides a long-term competitive advantage.
GSAT stands to gain from multiple tailwinds. Globalstar is benefiting from continued growth in wholesale capacity services and commercial IoT revenues. Commercial IoT is witnessing an increase in the average number of subscribers, driven by robust growth in gross activations in the trailing 12 months. The company is witnessing growing traction in the government, especially U.S. federal agencies and defense markets. It reiterated its 2025 revenue outlook of $260-$285 million and expects adjusted EBITDA margins around 50%.
GSAT is advancing new innovative platforms, such as the RM200 two-way module and XCOM RAN, which could drive the top line further. The RM200M module is the first satellite module to feature integrated GNSS, Bluetooth, an accelerometer and an application processor, enabling advanced two-way communication. It is witnessing growing traction across verticals such as oil & gas, defense and MVNOs, and has been tested by over 50 partners.
With XCOM RAN, GSAT is eyeing entry into terrestrial wireless markets, significantly broadening its total addressable market. The platform will also enable next-gen hybrid satellite-terrestrial network architectures, thereby further expanding business opportunities.
Globalstar is in the midst of a comprehensive infrastructure upgrade and recently launched its global ground infrastructure program for its next-generation Extended MSS Network, or the C-3 system. Under this program, it will add about 90 antennas across 35 ground stations in 25 countries, significantly boosting network capacity and resiliency. As a part of this expansion, it recently announced the construction to double the size of its existing ground station in Estonia to support the 3rd generation of its C-3 constellation. Before that, it had announced the construction of another gateway infrastructure at its current ground station at OTE S.A.’s commercial teleport in Nemea, Greece. Last month, it announced the construction of an expansion to its Singapore ground station.
Iridium operates one of the largest commercial constellations with a mesh architecture of 66 operational LEO satellites to route traffic using radio frequency crosslinks. The architecture provides strong performance by minimizing the need for ground infrastructure.
Iridium continues to deliver growth across key segments like commercial IoT, voice and data, and the government segment. Iridium’s 25-year relationship with the U.S. Department of Defense is a significant moat. The company continues to secure new DoD contracts and expects $108 million in revenues for 2025 from government business, which includes the final step-up in the EMSS contract.
A major step in Iridium’s growth strategy was the acquisition of Satelles, a company specializing in highly secure satellite-based time and location services. This new business line, known as Iridium Satellite Time and Location (“STL”), is a Positioning, Navigation and Timing (“PNT”) service that offers a resilient alternative to GPS and other GNSS systems, which can be vulnerable to jamming or spoofing. Interest in this solution has grown significantly, and the STL business is targeted to generate more than $100 million in service revenues per year by 2030.
The company expects to generate about $1 billion in service revenues by 2030. To achieve this long-term goal, management is focused on developing several services, including Direct-to-Device (Iridium NTN Direct), IoT (Iridium Certus IoT products) and satellite-based personal communication devices in addition to STL. It recently teamed up with Deutsche Telekom to integrate Iridium’s NTN Direct service into Deutsche Telekom’s terrestrial global IoT infrastructure. Iridium NTN Direct is built to complement terrestrial networks such as Deutsche Telekom’s, delivering seamless worldwide coverage and extending the reach of their existing infrastructure.
While the company maintained its long-term outlook, it lowered the full-year 2025 service revenue growth guidance from 5-7% to 3-5%. The decrease is mainly due to three factors: the transition of maritime broadband to a companion service, voice subscriber losses related to canceled USAID funding noted in the first quarter and a delay in PNT revenues, now expected in 2026. However, it forecasts OEBITDA at $490 million to $500 million, up from $470.6 million in 2024.
Over the past month, GSAT has gained 22.8% while IRDM has declined 30.4%.
Zacks Investment Research
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales ratio, GSAT shares are trading at 14.52X, higher than IRDM’s 2.06X.
Zacks Investment Research
Image Source: Zacks Investment Research
Analysts have significantly revised their earnings estimates upward for GSAT’s bottom line for the current year.
Zacks Investment Research
Image Source: Zacks Investment Research
For IRDM, there has been a marginal downward revision over the past 60 days.
Zacks Investment Research
Image Source: Zacks Investment Research
Both companies are well-positioned to gain from the rapidly growing satellite and communications market.
IRDM carries a Zacks Rank #3 (Hold) at present, while GSAT flaunts a Zacks Rank #1 (Strong Buy). Consequently, in terms of Zacks Rank, GSAT seems to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
