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

Insider and Institutional Ownership

17.6% of Lantronix shares are owned by institutional investors. Comparatively, 45.0% of EchoStar Corporation shares are owned by institutional investors. 52.0% of Lantronix shares are owned by company insiders. Comparatively, 73.5% of EchoStar Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lantronix and EchoStar Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lantronix 0 0 1 0 3.00
EchoStar Corporation 0 1 2 0 2.67

Lantronix currently has a consensus price target of $4.00, suggesting a potential upside of 69.49%. EchoStar Corporation has a consensus price target of $63.33, suggesting a potential upside of 11.03%. Given Lantronix’s stronger consensus rating and higher possible upside, analysts plainly believe Lantronix is more favorable than EchoStar Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Lantronix -0.62% 2.55% 1.76%
EchoStar Corporation 5.03% 2.87% 1.27%

Risk and Volatility

Lantronix has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500. Comparatively, EchoStar Corporation has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lantronix and EchoStar Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lantronix $44.73 million 0.94 $657,000.00 ($0.02) -118.00
EchoStar Corporation $3.08 billion 1.77 $854.47 million $1.27 44.91

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

Summary

EchoStar Corporation beats Lantronix on 10 of the 14 factors compared between the two stocks.

Lantronix Company Profile

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

EchoStar Corporation Company Profile

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.

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