Comparing Echostar (SATS) & ARRIS International (ARRS)

ARRIS International (NASDAQ: ARRS) and Echostar (NASDAQ:SATS) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Volatility & Risk

ARRIS International has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Echostar has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares ARRIS International and Echostar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARRIS International 2.51% 14.02% 5.89%
Echostar 5.55% 2.85% 1.26%

Insider & Institutional Ownership

86.8% of ARRIS International shares are owned by institutional investors. Comparatively, 44.5% of Echostar shares are owned by institutional investors. 0.9% of ARRIS International shares are owned by insiders. Comparatively, 73.5% of Echostar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for ARRIS International and Echostar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARRIS International 0 3 6 0 2.67
Echostar 0 1 1 0 2.50

ARRIS International presently has a consensus price target of $33.33, indicating a potential upside of 35.12%. Echostar has a consensus price target of $70.00, indicating a potential upside of 22.51%. Given ARRIS International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ARRIS International is more favorable than Echostar.

Valuation & Earnings

This table compares ARRIS International and Echostar’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARRIS International $6.83 billion 0.68 $18.10 million $0.87 28.36
Echostar $3.06 billion 1.79 $179.93 million $1.24 46.08

Echostar has lower revenue, but higher earnings than ARRIS International. ARRIS International is trading at a lower price-to-earnings ratio than Echostar, indicating that it is currently the more affordable of the two stocks.

Summary

ARRIS International beats Echostar on 8 of the 14 factors compared between the two stocks.

ARRIS International Company Profile

ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services.

Echostar Company Profile

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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