KVHI vs. GILT: Which Satellite Stock Offers Better Value?

Overview of Satellite Communications Industry

Satellite communications companies are navigating a dynamic landscape shaped by rising demand for broadband connectivity, the expansion of next-generation satellite networks, and growing communications needs across commercial, maritime, and government sectors. Two key players in this industry, KVH Industries, Inc. (KVHI) and Gilat Satellite Networks Ltd. (GILT), offer distinct approaches to providing satellite communication solutions.

KVHI primarily serves the maritime sector, delivering connectivity, content, and managed communication services. In contrast, GILT focuses on developing satellite networking equipment and end-to-end broadband communication solutions that cater to a broader range of customers, including commercial, defense, aviation, and government entities. These differences in market focus lead to unique investment profiles, prompting the question: which company is better positioned to deliver long-term shareholder value?

Stock Performance & Valuation: KVHI vs. GILT

Over the past three months, KVHI has outperformed GILT, with KVHI down 5.7% compared to GILT's 34.1% decline. Looking at the past year, KVH Industries has surged 75%, while Gilat has gained 45.4%.

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In terms of valuation, KVHI is currently trading at a trailing 12-month enterprise value-to-sales (EV/S) ratio of 1.04X, which is above its five-year median of 0.61X. GILT’s EV/S multiple stands at 1.46X, higher than its five-year median of 1.10X. Both companies appear undervalued when compared to the Zacks Computer and Technology sector average of 8.73X.

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Factors Driving KVH Industries Stock

KVH Industries is transitioning its business model toward recurring, subscription-based revenues generated from connectivity, content, and managed services. Airtime services make up the majority of sales, while value-added offerings such as cybersecurity, crew welfare content, bandwidth management, and managed IT help deepen customer relationships and create additional monetization opportunities.

This shift not only improves revenue visibility but also increases customer retention by integrating multiple services into a single platform. KVHI’s return to profitability in the first quarter of 2026 highlights the potential earnings growth from this transformation.

The company is also benefiting from the maritime industry’s move toward multi-orbit connectivity, combining geosynchronous orbit (GEO), low-earth-orbit (LEO), and cellular networks. KVH continues to expand its offerings through partnerships like Starlink and Eutelsat OneWeb, while also increasing its presence in emerging markets such as India and Latin America.

Additionally, KVH is simplifying its operations by phasing out in-house manufacturing and transitioning customers to compatible third-party hardware. This asset-light model allows the company to focus on higher-value connectivity, software, and managed services, improving operating flexibility and supporting long-term margin expansion.

Factors Driving Gilat Stock

Defense has become a major growth driver for Gilat, with the company expanding its presence in the U.S., Europe, and other international markets. Through its DataPath, Wavestream, and Gilat Defense businesses, the company provides mission-critical communications, portable gateways, and multi-orbit SATCOM solutions that meet the growing demand for resilient battlefield connectivity.

Recent contract wins from U.S. and European defense customers reinforce Gilat’s competitive position and strengthen customer relationships. The defense segment also contributed to improved profitability in the first quarter of 2026.

Gilat is well-positioned to benefit from the satellite industry’s shift toward multi-orbit architectures across aviation, mobility, and enterprise communications. Its portfolio of electronically steered antennas, software-defined networking platforms, and ground infrastructure enables seamless integration of GEO, LEO, and future satellite constellations.

Acquisitions are playing a key role in Gilat’s long-term strategy, expanding its capabilities and market reach. The additions of DataPath and Stellar Blu have strengthened its presence in defense and aviation communications, while the planned acquisition of Comtech’s Satellite & Space Communications business would significantly enhance its U.S. footprint and technology portfolio.

Choosing KVHI Over GILT Now

Both KVH Industries and Gilat are well-positioned to benefit from the long-term growth of the satellite communications industry, but they present different investment opportunities. KVHI is executing a focused transformation toward a higher-quality business built around recurring connectivity and managed services. Its asset-light model, combined with increasing subscription-based revenue, is improving earnings visibility and allowing management to concentrate on expanding its core maritime communications franchise.

Gilat offers a broader growth platform spanning defense, commercial satellite networking, aviation connectivity, and enterprise communications. Its continued investment in multi-orbit technologies and strategic acquisitions has expanded its addressable markets and strengthened its competitive position. However, sustaining this growth will depend on successful execution across multiple initiatives as GILT continues to integrate acquisitions and pursue larger opportunities.

From a valuation standpoint, both companies appear attractively priced relative to the broader sector, suggesting investors are not paying excessive premiums for their long-term growth potential. However, KVHI trades at a lower valuation than GILT, offering investors exposure to favorable industry trends at a comparatively more reasonable price.

While both stocks have compelling long-term prospects, KVH Industries appears to be the better buy. Its simpler business model, expanding base of recurring revenue, improving profitability, and relatively more attractive valuation provide a compelling balance of growth potential and execution visibility for long-term investors.

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