Analyzing Echostar (SATS) and TESSCO Technologies (TESS)
Echostar (NASDAQ: SATS) and TESSCO Technologies (NASDAQ:TESS) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
This table compares Echostar and TESSCO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 4.8%. Echostar does not pay a dividend. TESSCO Technologies pays out 235.3% 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 is a summary of current recommendations and price targets for Echostar and TESSCO Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Echostar currently has a consensus price target of $70.00, indicating a potential upside of 18.44%. Given Echostar’s higher probable upside, research analysts clearly believe Echostar is more favorable than TESSCO Technologies.
Earnings & Valuation
This table compares Echostar and TESSCO Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echostar||$3.06 billion||1.85||$179.93 million||$1.17||50.51|
|TESSCO Technologies||$533.29 million||0.26||$1.44 million||$0.34||49.41|
Echostar has higher revenue and earnings than TESSCO Technologies. TESSCO Technologies is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Echostar has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Insider and Institutional Ownership
44.5% of Echostar shares are held by institutional investors. Comparatively, 58.3% of TESSCO Technologies shares are held by institutional investors. 73.5% of Echostar shares are held by company insiders. Comparatively, 26.9% of TESSCO Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Echostar beats TESSCO Technologies on 10 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.
About TESSCO Technologies
TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.
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