Critical Analysis: EchoStar (NASDAQ:SATS) versus Eutelsat Communications (OTCMKTS:EUTLF)

EchoStar (NASDAQ:SATS) and Eutelsat Communications (OTCMKTS:EUTLF) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Profitability

This table compares EchoStar and Eutelsat Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EchoStar	-1.37%	-1.08%	-0.37%
Eutelsat Communications	N/A	N/A	N/A

Volatility and Risk

EchoStar has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Eutelsat Communications has a beta of -0.95, indicating that its share price is 195% less volatile than the S&P 500.

Institutional & Insider Ownership

33.6% of EchoStar shares are owned by institutional investors. 55.9% of EchoStar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares EchoStar and Eutelsat Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EchoStar	$15.83 billion	0.52	-$119.55 million	($0.75)	-38.15
Eutelsat Communications	$1.31 billion	0.72	-$335.31 million	N/A	N/A

EchoStar has higher revenue and earnings than Eutelsat Communications.

Analyst Ratings

This is a summary of recent ratings and recommmendations for EchoStar and Eutelsat Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EchoStar	1	4	1	0	2.00
Eutelsat Communications	1	1	0	0	1.50

EchoStar currently has a consensus target price of $24.70, indicating a potential downside of 13.67%. Given EchoStar’s stronger consensus rating and higher probable upside, analysts plainly believe EchoStar is more favorable than Eutelsat Communications.

Summary

EchoStar beats Eutelsat Communications on 8 of the 12 factors compared between the two stocks.

About EchoStar

EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in four segments: Pay-TV, Retail Wireless, 5G Network Deployment, Broadband and Satellite Services. The Pay-TV segment offers a direct broadcast and fixed satellite services; designs, develops, and distributes receiver system; and provides digital broadcast operations, including satellite uplinking/downlinking, transmission and, other services to third-party pay-TV providers; and multichannel, live-linear and on-demand streaming over-the-top internet-based domestic, international, Latino, and Freestream video programming services under the DISH and SLING brand names. The Retail Wireless segment provides prepaid and postpaid wireless services under the Boost Mobile, Boost postpaid, and Gen Mobile brands, as well various wireless devices. The Network Deployment segment deploys a facilities-based 5G broadband network and commercializes deployment of 5G VoNR. The Broadband and Satellite Services offers broadband services to consumer customers, which include home, and small to medium-sized businesses; and satellite and multi-transport technologies, and managed network services to telecommunications providers, aeronautical service providers, civilian and defense government entities, and other enterprise customers. EchoStar Corporation was incorporated in 2007 and is headquartered in Englewood, Colorado.

About Eutelsat Communications

Eutelsat Group, together with its subsidiaries, engages in the operation of telecommunication satellites. It provides capacity for video services, fixed data, and government services; and capacity in connectivity applications, such as fixed broadband and mobile connectivity. The company offers its services under the Eutelsat brand directly and through distributors. It operates 36 satellites in geostationary orbit. The company serves satellite-based video, business and broadband networks, and mobile services mainly to international telecommunications operators and broadcasters, corporate network integrators, companies, telecom operators, and government agencies in France, Italy, the United Kingdom, rest of Europe, the Americas, the Middle East, Africa, Asia, and internationally. The company was formerly known as Eutelsat Communications S.A. and changed its name to Eutelsat Group in October 2023. Eutelsat Group was founded in 1977 and is headquartered in Issy-les-Moulineaux, France.