TESSCO Technologies (TESS) & Echostar (SATS) Critical Review
TESSCO Technologies (NASDAQ: TESS) and Echostar (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 analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
58.3% of TESSCO Technologies shares are owned by institutional investors. Comparatively, 44.5% of Echostar shares are owned by institutional investors. 26.9% of TESSCO Technologies shares are owned by company insiders. Comparatively, 73.5% of Echostar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
TESSCO Technologies has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Echostar has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for TESSCO Technologies and Echostar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Echostar has a consensus price target of $70.00, indicating a potential upside of 18.44%. Given Echostar’s higher probable upside, analysts clearly believe Echostar is more favorable than TESSCO Technologies.
This table compares TESSCO Technologies and Echostar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares TESSCO Technologies and Echostar’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TESSCO Technologies||$533.29 million||0.26||$1.44 million||$0.34||49.41|
|Echostar||$3.06 billion||1.85||$179.93 million||$1.17||50.51|
Echostar has higher revenue and earnings than TESSCO Technologies. TESSCO Technologies is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 4.8%. Echostar does not pay a dividend. TESSCO Technologies pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Echostar beats TESSCO Technologies on 10 of the 15 factors compared between the two stocks.
About TESSCO Technologies
TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.
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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