uCloudlink Group (NASDAQ:UCL) versus Telesat (NASDAQ:TSAT) Financial Contrast

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

Valuation & Earnings

This table compares Telesat and uCloudlink Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telesat $604.93 million 0.29 $82.62 million N/A N/A
uCloudlink Group $73.82 million 0.42 -$46.04 million ($1.62) -0.67

Telesat has higher revenue and earnings than uCloudlink Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Telesat N/A 13.08% 3.98%
uCloudlink Group -62.37% -94.89% -41.77%

Volatility and Risk

Telesat has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, uCloudlink Group has a beta of 3.42, suggesting that its share price is 242% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Telesat and uCloudlink Group, as provided by MarketBeat.

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

Institutional & Insider Ownership

0.2% of uCloudlink Group shares are held by institutional investors. 40.6% of Telesat shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Telesat beats uCloudlink Group on 7 of the 10 factors compared between the two stocks.

Telesat Company Profile (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.

uCloudlink Group Company Profile (Get Rating)

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. It provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators (MVNOs), mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. The company also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solutions for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, it provides uCloudlink 3.0, including B2C retail, B2B2C wholesale, and platform-as-a-service/ software-as-a-service platform-based connectivity ecosystem. Further, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value added services, such as advertisement. Additionally, it's platform-as-a-service/ software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. The company was incorporated in 2014 and is headquartered in Kowloon, Hong Kong.

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