Comparing Telesat (NASDAQ:TSAT) & ATN International (NASDAQ:ATNI)

Telesat (NASDAQ:TSAT) and ATN International (NASDAQ:ATNI) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

65.5% of ATN International shares are owned by institutional investors. 40.6% of Telesat shares are owned by company insiders. Comparatively, 5.6% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Telesat and ATN International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	-102.62%	-15.53%	-3.95%
ATN International	22.55%	-9.46%	-3.25%

Volatility and Risk

Telesat has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, ATN International has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Telesat and ATN International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	3	2	2	0	1.86
ATN International	0	2	0	0	2.00

Telesat presently has a consensus target price of $33.50, indicating a potential downside of 25.49%. Given Telesat’s higher possible upside, equities analysts clearly believe Telesat is more favorable than ATN International.

Valuation & Earnings

This table compares Telesat and ATN International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesat	$299.12 million	2.29	-$111.19 million	($17.89)	-2.51
ATN International	$727.97 million	0.54	-$14.91 million	$10.28	2.50

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

Summary

ATN International beats Telesat on 9 of the 14 factors compared between the two stocks.

About Telesat

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.

About ATN International

ATN International, Inc., through its subsidiaries, engages in the provision of digital infrastructure and communications services to residential, business, and government customers in the United States and internationally. The company operates through International Telecom and US Telecom segments. The company offers mobile, data, voice, broadband, and fixed services; handsets and accessories; and wholesale roaming, long distance voice services, and site maintenance services. It also leases critical network infrastructure, including towers and transport facilities; and provides managed information technology services, such as network, application, infrastructure, and hosting services. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.