4-Star Small Caps Set to Soar: Iridium

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile voice and data communications company Iridium Communications (Nasdaq: IRDM  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Iridium and see what CAPS investors are saying about the stock right now.

Iridium facts

Headquarters (founded)

McLean, Va. (2000)

Market Cap

$470.7 million

Industry

Alternative carriers

Trailing-12-Month Revenue

$386.2 million

Management

CEO Matthew Desch (since 2006)
CFO Thomas Fitzpatrick (since 2010)

Trailing-12-Month Return on Equity

7.6%

Cash/Debt

$189.4 million / $588.9 million

Competitors

Globalstar (Nasdaq: GSAT  )
ORBCOMM (Nasdaq: ORBC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 198 members who have rated Iridium believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ScalaAnalyst, succinctly summed up the Iridium bull case for our community:

Because it has fallen from grace recently, the price to the book ratio is becoming quite favorable. Although it has been hit hard because they haven't met every street analysts expectations, this stock is still show some great earnings growth and sales growth. Perhaps the Analysts should simply lower their expectations slightly. In a troubled market it is hard for a company to grow 20% annually, so, I could learn to live with 13% to 15% annual growth. Debt to equity ratio is low and they are cranking positive earnings. All together a win-win in my portfolio.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Iridium may not be your top choice.

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