Comparing Telesat (NASDAQ:TSAT) & IHS (NYSE:IHS)

IHS (NYSE:IHS) and Telesat (NASDAQ:TSAT) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Profitability

This table compares IHS and Telesat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IHS	8.17%	-832.09%	11.80%
Telesat	-102.62%	-15.53%	-3.95%

Analyst Ratings

This is a summary of recent recommendations and price targets for IHS and Telesat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IHS	1	4	2	0	2.14
Telesat	3	2	2	0	1.86

IHS currently has a consensus target price of $8.80, suggesting a potential upside of 5.58%. Telesat has a consensus target price of $33.50, suggesting a potential downside of 30.21%. Given IHS’s stronger consensus rating and higher probable upside, equities research analysts clearly believe IHS is more favorable than Telesat.

Insider and Institutional Ownership

17.5% of IHS shares are held by institutional investors. 1.1% of IHS shares are held by company insiders. Comparatively, 40.6% of Telesat shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

IHS has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.

Earnings & Valuation

This table compares IHS and Telesat”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IHS	$1.58 billion	1.78	$143.60 million	$0.40	20.84
Telesat	$299.12 million	2.38	-$111.19 million	($17.89)	-2.68

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

Summary

IHS beats Telesat on 9 of the 13 factors compared between the two stocks.

About IHS

IHS Inc. develops source of information, insight and analytics in different areas of business. The Company’s segments include Resources, Transportation and Consolidated Markets & Solutions. The Company’s Resources segment includes its Energy and Chemicals product offerings. Its Transportation segment includes its Automotive; Maritime & Trade, and Aerospace, Defense & Security product offerings. Its Consolidated Markets & Solutions segment includes its Product Design; Technology, Media & Telecom, and Economics & Country Risk product offerings. It provides authoritative analysis and forecasts of sales and production for light vehicles, medium and heavy commercial vehicles, powertrain, components and technology systems across various markets. Its product design offerings include content and analysis on various engineering and technical standards, codes, reference books, journals, and other scientific and technical documents, as well as software-based engineering decision engines.

About Telesat

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.