Critical Review: Echostar (SATS) & Comtech Telecommunications Corp. (CMTL)
Echostar (NASDAQ: SATS) and Comtech Telecommunications Corp. (NASDAQ:CMTL) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
44.8% of Echostar shares are owned by institutional investors. Comparatively, 82.5% of Comtech Telecommunications Corp. shares are owned by institutional investors. 73.5% of Echostar shares are owned by insiders. Comparatively, 6.4% of Comtech Telecommunications Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Echostar and Comtech Telecommunications Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Echostar||$3.08 billion||1.83||$854.47 million||$1.27||46.39|
|Comtech Telecommunications Corp.||$554.98 million||0.82||$56.17 million||$0.50||38.44|
Echostar has higher revenue and earnings than Comtech Telecommunications Corp.. Comtech Telecommunications Corp. is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.
This table compares Echostar and Comtech Telecommunications Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comtech Telecommunications Corp.||2.02%||0.81%||0.42%|
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Echostar does not pay a dividend. Comtech Telecommunications Corp. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Echostar has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Comtech Telecommunications Corp. has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Echostar and Comtech Telecommunications Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comtech Telecommunications Corp.||0||2||3||0||2.60|
Echostar currently has a consensus price target of $62.50, indicating a potential upside of 6.09%. Comtech Telecommunications Corp. has a consensus price target of $17.90, indicating a potential downside of 6.87%. Given Echostar’s stronger consensus rating and higher possible upside, equities analysts plainly believe Echostar is more favorable than Comtech Telecommunications Corp..
Echostar Company Profile
EchoStar Corporation is a holding company. The Company is a provider of satellite operations, video delivery solutions, digital set-top boxes, and broadband satellite technologies and services for home and office, delivering network technologies, managed services, and solutions for enterprises and governments. The Company operates through three segments: Hughes, EchoStar Technologies (ETC) and EchoStar Satellite Services (ESS). The Company’s Hughes segment provides broadband satellite technologies and broadband services for the home and office, delivering network technologies, managed services and communication solutions to domestic and international consumers and enterprise and government customers. The ETC segment provides end-to-end video and broadcast technology products and services to businesses and directly to consumers. The ESS segment operates its business using its owned and leased in-orbit satellites. Its operations also include real estate and other activities.
Comtech Telecommunications Corp. Company Profile
Comtech Telecommunications Corp. designs, develops, produces and markets products, systems and services for communications solutions. The Company operates through two segments: Commercial Solutions and Government Solutions. It offers communications solutions, including command and control technologies, safety and security technologies and enterprise technologies. Its Commercial Solutions segment provides satellite communications (such as satellite earth station modems and traveling wave tube amplifiers), public safety systems (such as next generation 911 technologies) and enterprise application technologies (such as messaging and trusted location-based technologies). The Government Solutions segment includes command and control technologies, troposcatter technologies, and radio frequency power and switching technologies. It serves system and network suppliers in the global satellite, defense, broadcast and aerospace industries, and the United States federal government, among others.
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