EchoStar Corporation (ECHO) vs Verizon Communications Inc. (VZ)

EchoStar Corporation and Verizon Communications Inc. are both Telecom Services companies. Verizon Communications Inc. is the larger, with a market value of $191.2B against $26.2B — 7.3× the size. EchoStar Corporation trades at the lower P/E: 2.7× against 11.8×. Verizon Communications Inc. grew revenue faster over the last twelve months: 1.38% against −19.8%. EchoStar Corporation has the higher net margin (81.3% vs 11.8%) and the lower return on invested capital (1.35% vs 6.75%). Across the 21 metrics below, EchoStar Corporation leads on 12 and Verizon Communications Inc. on 9.

Valuation

Metric ECHO VZ Telecom Services median
P/E 2.66 11.76 12.29
P/S 2.16 1.37 0.94
P/B 1.55 1.79 1.25
Price to free cash flow n/m 10.71 8.15
EV/EBITDA 24.19 7.27 7.05
EV/Sales 1.81 2.53 1.79
Earnings yield 37.62% 8.51% 3.40%
Free cash flow yield (2.22%) 9.33% 4.48%

Profitability

Metric ECHO VZ Telecom Services median
Gross margin 32.49% 59.59% 48.78%
Operating margin 2.25% 20.86% 9.22%
Net margin 81.29% 11.78% 6.67%
Free cash flow margin (4.38%) 12.83% 2.87%
Return on equity 82.42% 15.37% 6.00%
Return on assets 24.25% 4.09% 1.50%
Return on invested capital 1.35% 6.75% 3.77%

Growth

Metric ECHO VZ Telecom Services median
Revenue growth (TTM) (19.83%) 1.38% 5.40%
EPS growth (last fiscal year) (11,356.82%) (1.93%) 0.62%
Revenue growth, 5-year CAGR 51.37% 1.50% 2.53%
Net income growth, 5-year CAGR 0.00% (0.71%) 0.00%

Health

Metric ECHO VZ Telecom Services median
Debt to equity 0.57 1.55 0.57
Current ratio 10.16 0.63 1.09
Net debt to EBITDA (1.41) 2.92 1.86

Dividend

Metric ECHO VZ Telecom Services median
Dividend yield — 6.10% 2.55%
Payout ratio — 0.72 0.40

Size

Metric ECHO VZ Telecom Services median
Market cap 26.16b 191.15b 3.16b

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