Harmonic (HLIT) and Echostar (SATS) Head-To-Head Analysis

Harmonic (NASDAQ: HLIT) and Echostar (NASDAQ:SATS) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

Harmonic has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Echostar has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

91.4% of Harmonic shares are owned by institutional investors. Comparatively, 45.7% of Echostar shares are owned by institutional investors. 5.5% of Harmonic shares are owned by company insiders. Comparatively, 73.5% of Echostar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Harmonic -22.02% -13.06% -6.02%
Echostar 7.45% 3.67% 1.64%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Harmonic and Echostar, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmonic 0 2 2 0 2.50
Echostar 0 1 1 0 2.50

Harmonic currently has a consensus price target of $5.33, indicating a potential upside of 80.79%. Echostar has a consensus price target of $70.00, indicating a potential upside of 17.10%. Given Harmonic’s higher possible upside, equities analysts plainly believe Harmonic is more favorable than Echostar.

Earnings and Valuation

This table compares Harmonic and Echostar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harmonic $405.91 million 0.59 -$72.31 million ($1.01) -2.92
Echostar $3.06 billion 1.87 $179.93 million $1.17 51.09

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

Summary

Echostar beats Harmonic on 9 of the 13 factors compared between the two stocks.

About Harmonic

Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.

About Echostar

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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