Array Digital Infrastructure (NYSE:AD) vs. Telesat (NASDAQ:TSAT) Head-To-Head Comparison

Array Digital Infrastructure (NYSE:AD) and Telesat (NASDAQ:TSAT) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Array Digital Infrastructure and Telesat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Array Digital Infrastructure	0	3	3	0	2.50
Telesat	3	2	2	0	1.86

Array Digital Infrastructure currently has a consensus price target of $47.40, suggesting a potential upside of 33.52%. Telesat has a consensus price target of $33.50, suggesting a potential downside of 34.82%. Given Array Digital Infrastructure’s stronger consensus rating and higher possible upside, equities analysts plainly believe Array Digital Infrastructure is more favorable than Telesat.

Risk and Volatility

Array Digital Infrastructure has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.

Institutional and Insider Ownership

18.0% of Array Digital Infrastructure shares are owned by institutional investors. 0.1% of Array Digital Infrastructure shares are owned by company insiders. Comparatively, 40.6% of Telesat shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Array Digital Infrastructure and Telesat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Array Digital Infrastructure	250.79%	8.52%	4.15%
Telesat	-102.62%	-15.53%	-3.95%

Valuation and Earnings

This table compares Array Digital Infrastructure and Telesat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Array Digital Infrastructure	$162.96 million	18.84	$48.76 million	$6.20	5.73
Telesat	$299.12 million	2.55	-$111.19 million	($17.89)	-2.87

Array Digital Infrastructure has higher earnings, but lower revenue than Telesat. Telesat is trading at a lower price-to-earnings ratio than Array Digital Infrastructure, indicating that it is currently the more affordable of the two stocks.

Summary

Array Digital Infrastructure beats Telesat on 11 of the 14 factors compared between the two stocks.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

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.