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 $197.0B against $26.3B — 7.5× the size. EchoStar Corporation has negative trailing earnings, so its P/E is not meaningful; Verizon Communications Inc. trades at 12.3×. Verizon Communications Inc. grew revenue faster over the last twelve months: 1.38% against −5.17%. Verizon Communications Inc. has the higher net margin (11.6% vs −38.7%) and the higher return on invested capital (6.64% vs −34.3%). Across the 19 metrics below, Verizon Communications Inc. leads on 13 and EchoStar Corporation on 6.

Valuation

Metric ECHO VZ Telecom Services median
P/E n/m 12.26 13.27
P/S 1.78 1.41 0.95
P/B 1.84 1.87 1.47
Price to free cash flow n/m 9.73 8.72
EV/EBITDA n/m 7.56 6.85
EV/Sales 2.87 2.59 1.87
Earnings yield (22.05%) 8.16% 1.66%
Free cash flow yield (2.97%) 10.27% 5.53%

Profitability

Metric ECHO VZ Telecom Services median
Gross margin 29.54% 59.26% 51.26%
Operating margin (112.71%) 20.54% 7.62%
Net margin (38.71%) 11.64% 4.22%
Free cash flow margin (4.95%) 14.51% 4.73%
Return on equity (33.38%) 15.43% 5.80%
Return on assets (11.42%) 4.08% 0.00%
Return on invested capital (34.32%) 6.64% 3.41%

Growth

Metric ECHO VZ Telecom Services median
Revenue growth (TTM) (5.17%) 1.38% 3.31%
EPS growth (last fiscal year) (11,356.82%) (1.93%) —
Revenue growth, 5-year CAGR 51.37% 1.50% 1.50%
Net income growth, 5-year CAGR 0.00% (0.71%) 0.00%

Health

Metric ECHO VZ Telecom Services median
Debt to equity 1.23 1.57 0.63
Current ratio 5.20 0.60 1.13
Net debt to EBITDA (1.41) 2.92 1.86

Dividend

Metric ECHO VZ Telecom Services median
Dividend yield — 6.75% 4.06%
Payout ratio 0.00 0.52 0.00

Size

Metric ECHO VZ Telecom Services median
Market cap 26.33b 196.96b 3.06b

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