EchoStar Corporation (ECHO) vs AT&T Inc. (T)

EchoStar Corporation and AT&T Inc. are both Telecom Services companies. AT&T Inc. is the larger, with a market value of $174.2B against $26.3B — 6.6× the size. EchoStar Corporation has negative trailing earnings, so its P/E is not meaningful; AT&T Inc. trades at 8.4×. AT&T Inc. grew revenue faster over the last twelve months: 2.63% against −5.17%. AT&T Inc. has the higher net margin (16.8% vs −38.7%) and the higher return on invested capital (6.33% vs −34.3%). Across the 18 metrics below, AT&T Inc. leads on 15 and EchoStar Corporation on 3.

Valuation

Metric ECHO T Telecom Services median
P/E n/m 8.40 13.27
P/S 1.78 1.38 0.95
P/B 1.84 1.39 1.47
Price to free cash flow n/m 9.99 8.72
EV/EBITDA n/m 6.58 6.85
EV/Sales 2.87 2.38 1.87
Earnings yield (22.05%) 11.90% 1.66%
Free cash flow yield (2.97%) 10.01% 5.53%

Profitability

Metric ECHO T Telecom Services median
Gross margin 29.54% 59.72% 51.26%
Operating margin (112.71%) 20.12% 7.62%
Net margin (38.71%) 16.83% 4.22%
Free cash flow margin (4.95%) 13.85% 4.73%
Return on equity (33.38%) 17.28% 5.80%
Return on assets (11.42%) 5.14% 0.00%
Return on invested capital (34.32%) 6.33% 3.41%

Growth

Metric ECHO T Telecom Services median
Revenue growth (TTM) (5.17%) 2.63% 3.31%
EPS growth (last fiscal year) (11,356.82%) 104.03% —
Revenue growth, 5-year CAGR 51.37% (2.56%) 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ECHO T Telecom Services median
Debt to equity 1.23 1.14 0.63
Current ratio 5.20 0.97 1.13
Net debt to EBITDA (1.41) 2.62 1.86

Dividend

Metric ECHO T Telecom Services median
Dividend yield — 6.67% 4.06%
Payout ratio 0.00 0.56 0.00

Size

Metric ECHO T Telecom Services median
Market cap 26.33b 174.19b 3.06b

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