Reviewing Casa Systems (CASA) & Echostar (SATS)

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Echostar (NASDAQ: SATS) and Casa Systems (NASDAQ:CASA) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Echostar and Casa Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echostar 0 1 1 0 2.50
Casa Systems 0 2 5 0 2.71

Echostar presently has a consensus target price of $73.00, indicating a potential upside of 64.41%. Casa Systems has a consensus target price of $25.17, indicating a potential upside of 54.11%. Given Echostar’s higher possible upside, equities research analysts plainly believe Echostar is more favorable than Casa Systems.

Profitability

This table compares Echostar and Casa Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echostar 17.06% 1.61% 0.74%
Casa Systems N/A N/A N/A

Insider & Institutional Ownership

43.8% of Echostar shares are held by institutional investors. Comparatively, 54.3% of Casa Systems shares are held by institutional investors. 73.5% of Echostar shares are held by company insiders. Comparatively, 65.2% of Casa Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Echostar and Casa Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echostar $1.89 billion 2.26 $392.56 million $0.84 52.86
Casa Systems $351.58 million 3.83 $88.50 million $0.79 20.67

Echostar has higher revenue and earnings than Casa Systems. Casa Systems 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 Casa Systems on 9 of the 13 factors compared between the two stocks.

Echostar Company Profile

EchoStar Corporation provides satellite service operations and video delivery solutions worldwide. It operates in two segments, Hughes and EchoStar Satellite Services. The Hughes segments offers broadband satellite technologies and Internet services for home and small office customers; and broadband network technologies, managed services, equipment, hardware, satellite services, and communication solutions for aeronautical, enterprise, and government customers, as well as consumers. This segment also designs, provides, and installs gateways and terminal equipment for other satellite systems; and provides satellite ground segment systems and terminals to mobile system operators. The EchoStar Satellite Services segment offers satellite service operations and video delivery solutions on a full-time and occasional-use basis primarily to corporates, the United States government service providers, Internet service providers, broadcast news organizations, programmers, and private enterprise customers. As of December 31, 2017, the company operated through a fleet of 19 owned and leased in-orbit satellites. EchoStar Corporation was founded in 2007 and is headquartered in Englewood, Colorado.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

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