Head to Head Survey: Telesat (TSAT) vs. Its Peers

Telesat (NASDAQ:TSAT) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it compare to its rivals? We will compare Telesat to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Telesat and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	2	3	4	0	2.22
Telesat Competitors	1759	5364	7770	386	2.44

Telesat currently has a consensus price target of $33.50, suggesting a potential downside of 29.52%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 22.47%. Given Telesat’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Telesat has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Telesat and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telesat	$299.12 million	-$111.19 million	-2.59
Telesat Competitors	$24.27 billion	$893.66 million	-167.52

Telesat’s rivals have higher revenue and earnings than Telesat. Telesat is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

33.0% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 40.6% of Telesat shares are held by company insiders. Comparatively, 19.2% of shares of all “Diversified Telecommunication Services” companies are held 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.

Volatility and Risk

Telesat has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Telesat’s rivals have a beta of -4.90, meaning that their average share price is 590% less volatile than the S&P 500.

Profitability

This table compares Telesat and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	-112.44%	-14.92%	-3.07%
Telesat Competitors	-9.80%	-221.19%	-3.40%

Summary

Telesat rivals beat Telesat on 8 of the 13 factors compared.

About Telesat

Telesat is a Canadian satellite communications company that provides connectivity services to customers including telecommunications providers, broadcasters, governments and businesses. Its services support applications such as broadband access, video distribution and communications for customers operating in remote or mobile environments. Founded in 1969 and headquartered in Ottawa, Telesat serves customers around the world through its satellite network and related ground infrastructure. The company operates geostationary satellites and is developing Telesat Lightspeed, a low Earth orbit satellite network intended to provide high-speed, low-latency connectivity.