Echostar (NASDAQ: SATS) and Inmarsat (OTCMKTS:IMASY) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
45.9% of Echostar shares are held by institutional investors. Comparatively, 0.0% of Inmarsat shares are held by institutional investors. 73.5% of Echostar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Echostar and Inmarsat’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echostar||$1.89 billion||2.72||$392.56 million||$4.07||13.17|
|Inmarsat||$1.33 billion||1.81||$242.80 million||$0.49||10.69|
Echostar has higher revenue and earnings than Inmarsat. Inmarsat is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Echostar and Inmarsat, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Echostar currently has a consensus target price of $73.00, indicating a potential upside of 36.19%. Given Echostar’s stronger consensus rating and higher possible upside, research analysts clearly believe Echostar is more favorable than Inmarsat.
Volatility and Risk
Echostar has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Inmarsat has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.
Inmarsat pays an annual dividend of $0.48 per share and has a dividend yield of 9.2%. Echostar does not pay a dividend. Inmarsat pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Echostar and Inmarsat’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Echostar beats Inmarsat on 12 of the 15 factors compared between the two stocks.
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.
Inmarsat plc provides mobile satellite communications services on land, at sea, and in the air worldwide. The company operates through five segments: Maritime, US Government, Enterprise, Aviation, and Global Government. It offers voice and data broadband services; global maritime distress and safety system services; mobile and fixed voice services; a portfolio of machine-to-machine services that provide two-way data connectivity for messaging, tracking, and monitoring of fixed or mobile assets; maritime satellite services, including very small aperture terminals and television receive only antenna services; and Global Xpress, a high-speed broadband service that offer seamless connectivity for advanced data services on land, at sea, and in the air. The company also offers in-flight voice, data, safety, and cabin connectivity services for business and commercial air transport. It connects to its fleet of 12 satellites using a range of equipment, including global handheld satellite phones and notebook-size broadband Internet devices, as well as specialist terminals and antennas fitted to ships, aircraft, and road vehicles. It serves governments, airlines, the broadcast media industry, the oil and gas industry, the mining and construction industry, and humanitarian aid agencies. The company has a strategic partnership with Deutsche Telekom AG to develop the European Aviation Network to combine satellite connectivity from Inmarsat?s S-band satellite with an LTE-based ground network. The company was founded in 1979 and is headquartered in London, the United Kingdom.
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