EchoStar (NASDAQ: SATS) and Infinera (NASDAQ:INFN) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares EchoStar and Infinera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EchoStar 5.55% 2.85% 1.26%
Infinera -21.59% -16.35% -10.23%

Earnings and Valuation

This table compares EchoStar and Infinera’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EchoStar $3.06 billion 1.89 $179.93 million $1.24 48.67
Infinera $870.14 million 1.21 -$23.92 million ($1.07) -6.59

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

Insider and Institutional Ownership

44.5% of EchoStar shares are held by institutional investors. Comparatively, 90.7% of Infinera shares are held by institutional investors. 73.5% of EchoStar shares are held by company insiders. Comparatively, 2.9% of Infinera shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

EchoStar has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Infinera has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for EchoStar and Infinera, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EchoStar 0 1 1 0 2.50
Infinera 0 6 9 0 2.60

EchoStar currently has a consensus price target of $70.00, suggesting a potential upside of 15.99%. Infinera has a consensus price target of $10.96, suggesting a potential upside of 55.44%. Given Infinera’s stronger consensus rating and higher possible upside, analysts plainly believe Infinera is more favorable than EchoStar.

Summary

EchoStar beats Infinera on 8 of the 13 factors compared between the two stocks.

About EchoStar

EchoStar Corporation is a holding company. The Company is a provider of satellite operations, video delivery solutions, digital set-top boxes, and broadband satellite technologies and services for home and office, delivering network technologies, managed services, and solutions for enterprises and governments. The Company operates through three segments: Hughes, EchoStar Technologies (ETC) and EchoStar Satellite Services (ESS). The Company’s Hughes segment provides broadband satellite technologies and broadband services for the home and office, delivering network technologies, managed services and communication solutions to domestic and international consumers and enterprise and government customers. The ETC segment provides end-to-end video and broadcast technology products and services to businesses and directly to consumers. The ESS segment operates its business using its owned and leased in-orbit satellites. Its operations also include real estate and other activities.

About Infinera

Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company’s portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.

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