ADTRAN (NASDAQ: ADTN) and EchoStar (NASDAQ:SATS) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
This is a breakdown of recent recommendations for ADTRAN and EchoStar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN currently has a consensus price target of $24.00, suggesting a potential upside of 8.35%. EchoStar has a consensus price target of $70.00, suggesting a potential upside of 20.34%. Given EchoStar’s higher possible upside, analysts clearly believe EchoStar is more favorable than ADTRAN.
Volatility and Risk
ADTRAN has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, EchoStar has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
Institutional and Insider Ownership
91.4% of ADTRAN shares are held by institutional investors. Comparatively, 44.5% of EchoStar shares are held by institutional investors. 3.0% of ADTRAN shares are held by insiders. Comparatively, 73.5% of EchoStar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. EchoStar does not pay a dividend. ADTRAN pays out 40.4% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares ADTRAN and EchoStar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$636.78 million||1.67||$35.22 million||$0.89||24.89|
|EchoStar||$3.06 billion||1.82||$179.93 million||$1.24||46.91|
EchoStar has higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than EchoStar, indicating that it is currently the more affordable of the two stocks.
This table compares ADTRAN and EchoStar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EchoStar beats ADTRAN on 9 of the 16 factors compared between the two stocks.
ADTRAN, Inc. (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world. It provides a full-range of network implementation, maintenance and managed services. Its solutions include Access & Aggregation, Customer Devices, and Traditional & Other Products. Its Access & Aggregation solutions are used by communications service providers (CSPs) to connect their network infrastructure to their subscribers. The portfolio of ADTRAN solutions within Access & Aggregation category includes a range of modular or fixed physical form factors designed to deliver the technology and economic fit based on the target subscriber density and environmental conditions.
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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