Comparing uCloudlink Group (NASDAQ:UCL) and EchoStar (NASDAQ:SATS)

uCloudlink Group (NASDAQ:UCL) and EchoStar (NASDAQ:SATS) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

0.1% of uCloudlink Group shares are owned by institutional investors. Comparatively, 43.7% of EchoStar shares are owned by institutional investors. 54.7% of EchoStar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for uCloudlink Group and EchoStar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
uCloudlink Group 0 0 0 0 N/A
EchoStar 0 0 0 1 4.00

EchoStar has a consensus price target of $45.00, suggesting a potential upside of 65.81%. Given EchoStar’s higher probable upside, analysts plainly believe EchoStar is more favorable than uCloudlink Group.

Profitability

This table compares uCloudlink Group and EchoStar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
uCloudlink Group -70.80% -127.77% -66.22%
EchoStar 4.86% 0.47% 0.24%

Earnings & Valuation

This table compares uCloudlink Group and EchoStar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
uCloudlink Group $89.57 million 3.46 -$63.42 million ($2.68) -4.10
EchoStar $1.89 billion 1.31 -$40.15 million ($0.40) -67.85

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

Summary

EchoStar beats uCloudlink Group on 11 of the 12 factors compared between the two stocks.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. It provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators (MVNOs), mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. The company also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solutions for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, it provides uCloudlink 3.0, including B2C retail, B2B2C wholesale, and platform-as-a-service/ software-as-a-service platform-based connectivity ecosystem. Further, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value added services, such as advertisement. Additionally, it's platform-as-a-service/ software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. The company was incorporated in 2014 and is headquartered in Kowloon, Hong Kong.

About EchoStar

EchoStar Corporation, together with its subsidiaries, provides broadband satellite technologies and broadband Internet services. It operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment provides broadband satellite technologies and internet services for home and small to medium-sized businesses; broadband network technologies; managed services; equipment, hardware, and communication solutions, as well as satellite services to service providers and enterprise customers; and designs, provides, and installs gateways and terminal equipment. This segment also designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals for mobile system operators and enterprise customers. The ESS segment provides satellite services using its owned and leased in-orbit satellites and related licenses on a full-time and/or occasional-use basis to the United States government service providers, Internet service providers, broadcast news organizations, content providers, and private enterprise customers, which include aeronautical and government enterprises. It serves in North America, South and Central America, Asia, Africa, Australia, Europe, India, and the Middle East. EchoStar Corporation was incorporated in 2007 and is headquartered in Englewood, Colorado.

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