Echostar (NASDAQ:SATS) and Technical Communications (NASDAQ:TCCO) Critical Comparison
Echostar (NASDAQ:SATS) and Technical Communications (NASDAQ:TCCO) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Volatility & Risk
Echostar has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Technical Communications has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
This table compares Echostar and Technical Communications’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echostar||$2.09 billion||1.97||-$40.47 million||$0.38||113.29|
|Technical Communications||$5.31 million||1.22||$100,000.00||N/A||N/A|
Technical Communications has lower revenue, but higher earnings than Echostar.
Institutional and Insider Ownership
47.9% of Echostar shares are held by institutional investors. Comparatively, 2.5% of Technical Communications shares are held by institutional investors. 51.6% of Echostar shares are held by insiders. Comparatively, 25.7% of Technical Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Echostar and Technical Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Echostar and Technical Communications, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Echostar currently has a consensus target price of $60.50, indicating a potential upside of 40.53%. Given Echostar’s higher probable upside, equities research analysts clearly believe Echostar is more favorable than Technical Communications.
Echostar beats Technical Communications on 8 of the 13 factors compared between the two stocks.
EchoStar Corporation, together with its subsidiaries, provides broadband satellite technologies and broadband Internet services for home and small office customers, satellite operations, and satellite services worldwide. It operates in two segments, Hughes and EchoStar Satellite Services. The Hughes segments offers broadband satellite technologies and Internet services for home and small office customers; and broadband network technologies, managed services, equipment, hardware, satellite services, and communication solutions for aeronautical, enterprise, and government customers, as well as consumers. This segment also designs, provides, and installs gateways and terminal equipment for other satellite systems; and provides satellite ground segment systems and terminals to mobile system operators and enterprise customers. The EchoStar Satellite Services segment provides satellite operations and services using its owned and leased in-orbits satellites to corporates, the United States government service providers, Internet service providers, broadcast news organizations, content providers, and private enterprise customers. This segment also provides telemetry, tracking, and control services for satellites, as well as technical consulting services. EchoStar Corporation was founded in 2007 and is headquartered in Englewood, Colorado.
About Technical Communications
Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide. The company primarily provides voice, data, and fax, and voice networks. Its products include government systems, such as DSD 72A-SP military bulk encryptor, CSD 3324 SE telephone/fax encryptor, and the DSP 9000 radio encryption system, as well as the HSE 6000 squad radio headset and telephone encryptor for public safety special operations land mobile radio applications and for military applications. The company also provides secure office systems, such as CSD 4100 executive secure telephone and CipherTalk 8500 Internet protocol (IP)-based secure wireless phone. In addition, it offers network security systems comprising network encryption systems with KEYNET centralized key and device management for IP, SONET/SDH, and frame relay networks to secure data in transit from local area network to local area network and across wide area networks. The company's products are used to protect confidentiality in communications between radios, telephones, mobile phones, facsimile machines, and data network equipment over wires, fiber optic cables, radio waves, and microwave and satellite links. It serves various markets, including foreign and domestic governmental agencies, law enforcement and military agencies, telecommunications carriers, financial institutions, and multinational companies requiring protection of mission-critical information. The company sells directly to customers, original equipment manufacturers, and value-added resellers using its in-house sales force, as well as domestic and international representatives, consultants, and distributors. Technical Communications Corporation was founded in 1961 and is headquartered in Concord, Massachusetts.
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