Critical Analysis: Telenor ASA (OTCMKTS:TELNY) & Telesat (NASDAQ:TSAT)

Telenor ASA (OTCMKTS:TELNY) and Telesat (NASDAQ:TSAT) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Telenor ASA and Telesat”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telenor ASA	$7.38 billion	2.68	$678.08 million	$0.98	14.77
Telesat	$299.12 million	2.45	-$111.19 million	($17.89)	-2.76

Telenor ASA has higher revenue and earnings than Telesat. Telesat is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Telenor ASA has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Telenor ASA and Telesat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	1	3	0	1	2.20
Telesat	3	2	2	0	1.86

Telesat has a consensus target price of $33.50, suggesting a potential downside of 32.04%. Given Telesat’s higher possible upside, analysts clearly believe Telesat is more favorable than Telenor ASA.

Profitability

This table compares Telenor ASA and Telesat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	17.19%	15.27%	5.20%
Telesat	-102.62%	-15.53%	-3.95%

Summary

Telenor ASA beats Telesat on 10 of the 13 factors compared between the two stocks.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

About Telesat

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.