DigitalGlobe (NYSE:DGI)

CAPS Rating: 3 out of 5

Recs

1
Player Avatar Stoptradits420 (36.52) Submitted: 5/19/2009 3:16:07 PM : Outperform Start Price: $18.32 DGI Score: +3.31

Size: DigitalGlobe is nearly twice as big as GeoEye by annual sales -- though that gap may be narrow with GeoEye's increased revenue from the launch of GeoEye-1.
Profitability: DigitalGlobe is more than twice as profitable (per revenue dollar) as GeoEye ... and that gap is expanding.
Profits that count: Finally, when it comes to the best kind of profit -- the cash-money kind that rustles in the wind, that you can count, the kind your landlord requires for your rent payment -- DigitalGlobe outclasses GeoEye by a mile. DigitalGlobe made money last year, and is starting off this year making even more. Both companies have been burning cash trying to get their new state-of-the-art satellites in the sky, but it looks like DigitalGlobe has been the more efficiently run operation. GeoEye? About the best we can say for it is that so far this year, GeoEye's not burning cash with quite as much abandon as it exhibited last year. Hooray? Once again, a lot of hope rests on GeoEye's new satellite GeoEye-1, but DigitalGlobe has already launched one successful next-generation satellite, and should beat GeoEye to getting two new birds in the sky when it launches Worldview-2 in December.
Foolish takeaway
I hate to say it, Fools, but I've got a sneaking suspicion that the folks at Motley Fool Rule Breakers are backing the wrong horse in this race. Whereas DigitalGlobe is shaping up to be a real racehorse, I'm starting to worry that GeoEye may be just a donkey in drag.

Visit link below for more:

http://msn.fool.com/investing/high-growth/2009/05/13/newsflash-geoeye-is-not-digitalglobe.aspx?logvisit=y&source=eedmsnlnk0010001&published=2009-05-13

Featured Broker Partners


Advertisement