Analyzing Telesat (NASDAQ:TSAT) & SES (OTCMKTS:SGBAF)

SES (OTCMKTS:SGBAF) and Telesat (NASDAQ:TSAT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

SES has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SES	-1.45%	3.78%	1.38%
Telesat	-16.09%	-6.83%	-2.60%

Analyst Recommendations

This is a breakdown of current ratings and price targets for SES and Telesat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES	0	2	0	1	2.67
Telesat	0	0	0	0	0.00

Earnings and Valuation

This table compares SES and Telesat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES	$2.17 billion	1.83	$16.23 million	($0.10)	-71.06
Telesat	$416.79 million	0.83	-$64.02 million	($4.47)	-5.67

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

Summary

SES beats Telesat on 9 of the 11 factors compared between the two stocks.

About SES

SES S.A. provides satellite-based data transmission capacity and ancillary services worldwide. The company offers content connectivity solutions, including network spanning satellite and ground infrastructure to create, deliver, and manage video and data solutions. It also provides data connectivity services through its fleet of geostationary earth orbit and medium earth orbit satellites to the aviation, cloud, cruise, energy, government, maritime, and telco and mobile network operator industries. In addition, the company offers video services, which includes end-to-end managed services to audience; and provides multi-screen and multi-device viewing experiences on linear channels, video-on-demand, streaming platforms, and social media sites for broadcasters, platform operators, and sports organizations. Further, it provides linear video aggregation and distribution, such as direct-to-home, direct-to-cable, and internet protocol TV households; channel management solutions comprising playout; and live feeds and redundancy features. The company was formerly known as SES Global SA and changed its name to SES S.A. in December 2006. SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.

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.