Reviewing Telesat (NASDAQ:TSAT) and Global X Space Tech ETF (NASDAQ:ORBX)

Telesat (NASDAQ:TSAT) and Global X Space Tech ETF (NASDAQ:ORBX) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Telesat and Global X Space Tech ETF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	2	3	1	0	1.83
Global X Space Tech ETF	0	6	2	0	2.57

Telesat presently has a consensus target price of $33.50, suggesting a potential downside of 10.09%. Global X Space Tech ETF has a consensus target price of $39.63, suggesting a potential upside of 0.00%. Given Global X Space Tech ETF’s stronger consensus rating and higher possible upside, analysts plainly believe Global X Space Tech ETF is more favorable than Telesat.

Profitability

This table compares Telesat and Global X Space Tech ETF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	-47.57%	-4.02%	-1.19%
Global X Space Tech ETF	N/A	N/A	N/A

Volatility & Risk

Telesat has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, Global X Space Tech ETF has a beta of 5.1, indicating that its share price is 410% more volatile than the S&P 500.

Valuation & Earnings

This table compares Telesat and Global X Space Tech ETF”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesat	$299.12 million	1.85	-$111.19 million	($9.02)	-4.13
Global X Space Tech ETF	N/A	N/A	N/A	N/A	N/A

Global X Space Tech ETF has lower revenue, but higher earnings than Telesat.

Summary

Global X Space Tech ETF beats Telesat on 7 of the 8 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.