EchoStar Corporation (ECHO) vs Telefonica Brasil S.A. (VIV)

EchoStar Corporation and Telefonica Brasil S.A. are both Telecom Services companies. EchoStar Corporation is the larger, with a market value of $26.3B against $18.7B — 1.4× the size. EchoStar Corporation has negative trailing earnings, so its P/E is not meaningful; Telefonica Brasil S.A. trades at 23.3×. Telefonica Brasil S.A. grew revenue faster over the last twelve months: 16.4% against −5.17%. Telefonica Brasil S.A. has the higher net margin (10.6% vs −38.7%) and the higher return on invested capital (8.17% vs −34.3%). Across the 19 metrics below, Telefonica Brasil S.A. leads on 13 and EchoStar Corporation on 6.

Valuation

Metric ECHO VIV Telecom Services median
P/E n/m 23.26 13.27
P/S 1.78 3.17 0.95
P/B 1.84 2.85 1.47
Price to free cash flow n/m 16.61 8.72
EV/EBITDA n/m 7.99 6.85
EV/Sales 2.87 3.36 1.87
Earnings yield (22.05%) 4.30% 1.66%
Free cash flow yield (2.97%) 6.02% 5.53%

Profitability

Metric ECHO VIV Telecom Services median
Gross margin 29.54% 45.03% 51.26%
Operating margin (112.71%) 17.00% 7.62%
Net margin (38.71%) 10.59% 4.22%
Free cash flow margin (4.95%) 19.09% 4.73%
Return on equity (33.38%) 9.89% 5.80%
Return on assets (11.42%) 5.17% 0.00%
Return on invested capital (34.32%) 8.17% 3.41%

Growth

Metric ECHO VIV Telecom Services median
Revenue growth (TTM) (5.17%) 16.40% 3.31%
EPS growth (last fiscal year) (11,356.82%) (45.52%) —
Revenue growth, 5-year CAGR 51.37% 4.99% 1.50%
Net income growth, 5-year CAGR 0.00% 3.60% 0.00%

Health

Metric ECHO VIV Telecom Services median
Debt to equity 1.23 0.30 0.63
Current ratio 5.20 0.95 1.13
Net debt to EBITDA (1.41) 0.53 1.86

Dividend

Metric ECHO VIV Telecom Services median
Dividend yield — 5.77% 4.06%
Payout ratio 0.00 0.83 0.00

Size

Metric ECHO VIV Telecom Services median
Market cap 26.33b 18.68b 3.06b

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