Telesat (NASDAQ:TSAT – Get Rating) and Ayro (NASDAQ:AYRO – Get Rating) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Profitability
This table compares Telesat and Ayro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telesat | N/A | 24.04% | 8.45% |
| Ayro | -1,232.95% | -39.53% | -37.31% |
Analyst Ratings
This is a breakdown of current ratings for Telesat and Ayro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telesat | 0 | 0 | 0 | 0 | N/A |
| Ayro | 0 | 0 | 0 | 0 | N/A |
Institutional and Insider Ownership
86.4% of Telesat shares are held by institutional investors. Comparatively, 17.8% of Ayro shares are held by institutional investors. 40.6% of Telesat shares are held by insiders. Comparatively, 5.4% of Ayro shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Telesat has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Ayro has a beta of 3.65, meaning that its share price is 265% more volatile than the S&P 500.
Earnings & Valuation
This table compares Telesat and Ayro’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telesat | $604.93 million | 0.24 | $82.62 million | $3.68 | 3.27 |
| Ayro | $2.68 million | 14.19 | -$33.08 million | ($0.94) | -1.10 |
Telesat has higher revenue and earnings than Ayro. Ayro is trading at a lower price-to-earnings ratio than Telesat, indicating that it is currently the more affordable of the two stocks.
Summary
Telesat beats Ayro on 9 of the 11 factors compared between the two stocks.
About Telesat (Get Rating)
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 Ayro (Get Rating)
Ayro, Inc. designs and manufactures electric vehicles for closed campus mobility, urban and community transport, local on-demand and last mile delivery, and government use. The company provides four-wheeled purpose-built electric vehicles for universities, business and medical campuses, last mile delivery services, and food service providers. It also offers AYRO vehicles to internal combustion engine vehicles for light duty uses, including low-speed logistics, maintenance, and cargo services; and Club Car 411 for low-speed logistics and cargo services for campus. The company was formerly known as AEV Technologies, Inc. Ayro, Inc. was founded in 2017 and is headquartered in Round Rock, Texas.
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