Financial Survey: EchoStar (NASDAQ:SATS) vs. Proxim Wireless (OTCMKTS:PRXM)


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EchoStar (NASDAQ:SATS) and Proxim Wireless (OTCMKTS:PRXM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

42.5% of EchoStar shares are held by institutional investors. 51.8% of EchoStar shares are held by company insiders. Comparatively, 3.6% of Proxim Wireless shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

EchoStar has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Proxim Wireless has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Profitability

This table compares EchoStar and Proxim Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EchoStar -5.10% -2.47% -1.28%
Proxim Wireless N/A N/A N/A

Earnings and Valuation

This table compares EchoStar and Proxim Wireless’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EchoStar $1.89 billion 1.19 -$62.92 million ($1.06) -22.55
Proxim Wireless N/A N/A N/A N/A N/A

Proxim Wireless has lower revenue, but higher earnings than EchoStar.

Analyst Recommendations

This is a breakdown of current recommendations for EchoStar and Proxim Wireless, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EchoStar 0 0 0 1 4.00
Proxim Wireless 0 0 0 0 N/A

EchoStar currently has a consensus target price of $41.00, indicating a potential upside of 71.55%. Given EchoStar’s higher possible upside, research analysts plainly believe EchoStar is more favorable than Proxim Wireless.

Summary

EchoStar beats Proxim Wireless on 5 of the 9 factors compared between the two stocks.

About EchoStar

EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Hughes, and EchoStar Satellite Services (ESS). The Hughes segment provides broadband satellite technologies and broadband internet services to domestic and international consumer customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers and enterprise customers. The ESS segment owns and leases in-orbit satellites and licenses to lease capacity on a full time and occasional use. The company was founded by Charlie William Ergen, Candy Ergen, and James DeFranco in 1980 and is headquartered in Englewood, CO.

About Proxim Wireless

Proxim Wireless Corporation provides Wi-Fi, point-to-point, and point-to-multipoint 4G wireless network technologies for wireless Internet, video surveillance, and backhaul applications. It offers wireless broadband and backhaul products, wireless LAN access products, and network controllers. The company's products have applications in transportation, video surveillance, mobility, Wi-Fi offload, backhaul, wireless broadband/ISP, government, carrier Wi-Fi, retail Wi-Fi, and enterprises WLAN. Its broadband wireless equipment is used by enterprises, service providers, carriers, government entities, educational institutions, healthcare organizations, municipalities and other organizations that need high-performance, secure, and scalable broadband wireless solutions. The company serves customers through online retailers, a network of distributors, value-added resellers, system integrators, and original equipment manufacturers in North America, Africa, the Asia Pacific, Europe, Latin America, and the Middle East. The company was founded in 1982 and is headquartered in San Jose, California. As of July 31, 2018, Proxim Wireless Corporation operates as a subsidiary of SRA Holdings, Inc.

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