Head to Head Contrast: Intelsat (OTCMKTS:INTEQ) & Telesat (NASDAQ:TSAT)

Intelsat (OTCMKTS:INTEQGet Rating) and Telesat (NASDAQ:TSATGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Intelsat -36.87% N/A -4.55%
Telesat N/A 24.04% 8.45%

Institutional & Insider Ownership

24.4% of Intelsat shares are owned by institutional investors. Comparatively, 86.4% of Telesat shares are owned by institutional investors. 1.8% of Intelsat shares are owned by insiders. Comparatively, 40.6% of Telesat shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Intelsat and Telesat’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intelsat $1.91 billion 0.00 -$911.66 million ($5.23) 0.00
Telesat $604.93 million 0.22 $82.62 million $3.68 3.05

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Intelsat and Telesat, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intelsat 0 0 0 0 N/A
Telesat 0 0 0 0 N/A

Risk & Volatility

Intelsat has a beta of -1.68, indicating that its share price is 268% less volatile than the S&P 500. Comparatively, Telesat has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Summary

Telesat beats Intelsat on 9 of the 10 factors compared between the two stocks.

About Intelsat (Get Rating)

Intelsat SA provides satellite services business, which provides a layer in the global communications infrastructure. It offers communication services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications, multinational corporations and Internet Service Providers (ISPs). The company also provides commercial satellite capacity to the U.S. government and other select military organizations and their contractors. Intelsat was founded on August 20, 1964 and is headquartered in Luxembourg.

About Telesat (Get Rating)

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.

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