Telesat (NASDAQ:TSAT) & Telecom Italia (OTCMKTS:TIAIY) Critical Survey

Telesat (NASDAQ:TSAT) and Telecom Italia (OTCMKTS:TIAIY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Risk & Volatility

Telesat has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Telesat and Telecom Italia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	0	1	0	0	2.00
Telecom Italia	0	0	0	0	N/A

Telesat presently has a consensus target price of $9.00, suggesting a potential upside of 8.70%. Given Telesat’s higher probable upside, research analysts plainly believe Telesat is more favorable than Telecom Italia.

Profitability

This table compares Telesat and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	20.08%	-2.57%	-0.96%
Telecom Italia	N/A	N/A	N/A

Earnings & Valuation

This table compares Telesat and Telecom Italia’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesat	$521.59 million	0.21	$116.39 million	$7.17	1.14
Telecom Italia	$16.86 billion	0.33	-$3.08 billion	N/A	N/A

Telesat has higher earnings, but lower revenue than Telecom Italia.

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 Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.