Echostar (NASDAQ:ECHO – Get Free Report) and Comcast (NASDAQ:CMCSA – Get Free Report) are both large-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Insider and Institutional Ownership
33.6% of Echostar shares are held by institutional investors. Comparatively, 84.3% of Comcast shares are held by institutional investors. 54.6% of Echostar shares are held by company insiders. Comparatively, 1.4% of Comcast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Echostar and Comcast’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Echostar | -38.71% | -1.28% | -0.25% |
| Comcast | 8.97% | 14.77% | 5.18% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Echostar and Comcast, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Echostar | 1 | 1 | 7 | 1 | 2.80 |
| Comcast | 5 | 13 | 11 | 0 | 2.21 |
Echostar presently has a consensus price target of $138.56, indicating a potential upside of 62.30%. Comcast has a consensus price target of $30.81, indicating a potential upside of 40.67%. Given Echostar’s stronger consensus rating and higher possible upside, equities analysts plainly believe Echostar is more favorable than Comcast.
Valuation and Earnings
This table compares Echostar and Comcast”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Echostar | $15.00 billion | 1.65 | -$14.50 billion | ($24.92) | -3.43 |
| Comcast | $123.71 billion | 0.63 | $20.00 billion | $3.09 | 7.09 |
Comcast has higher revenue and earnings than Echostar. Echostar is trading at a lower price-to-earnings ratio than Comcast, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Echostar has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Comcast has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Summary
Comcast beats Echostar on 9 of the 15 factors compared between the two stocks.
About Echostar
EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment offers broadband network technologies, managed services, equipment, hardware, satellite services, and communications solutions to government and enterprise customers. The segment also designs, provides, and installs gateway and terminal equipment to customers for other satellite systems. In addition, it designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and enterprise customers. Further, this segment designs, provides, and installs gateway and terminal equipment to customers for other satellite systems, as well as offers satellite ground segment systems and terminals for other satellite systems, including mobile system operators. The ESS segment provides satellite services using its owned and leased in-orbit satellites and related licenses to offer satellite services on a full-time and/or occasional-use basis to the U.S. government service providers, internet service providers, broadcast news organizations, content providers, and private enterprise customers. It serves customers in North America, South and Central America, Asia, Africa, Australia, Europe, India, and the Middle East. The company was incorporated in 2007 and is headquartered in Englewood, Colorado.
About Comcast
Comcast Corporation operates as a media and technology company worldwide. It operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising. The Business Services Connectivity segment offers connectivity services for small business locations, which include broadband, wireline voice, and wireless services, as well as solutions for medium-sized customers and larger enterprises; and small business connectivity services in the United Kingdom. The Media segment operates NBCUniversal's television and streaming business, including national and regional cable networks; the NBC and Telemundo broadcast networks and owned local broadcast television stations; and Peacock, a direct-to-consumer streaming services. It also operates international television networks comprising the Sky Sports networks, as well as other digital properties. The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations. The Theme Parks segment operates Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. The company also offers a consolidated streaming platforms under the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.
Receive News & Ratings for Echostar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Echostar and related companies with MarketBeat.com's FREE daily email newsletter.
-logo-1200x675.jpg){kind=logo}
