Financial Review: Telesat (NASDAQ:TSAT) vs. Metro One Telecommunications (OTCMKTS:WOWI)

Telesat (NASDAQ:TSAT) and Metro One Telecommunications (OTCMKTS:WOWI) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares Telesat and Metro One Telecommunications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	20.08%	-2.57%	-0.96%
Metro One Telecommunications	N/A	-348.73%	-97.63%

Earnings and Valuation

This table compares Telesat and Metro One Telecommunications’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesat	$521.59 million	0.24	$116.39 million	$7.17	1.27
Metro One Telecommunications	$80,000.00	2.84	-$3.93 million	N/A	N/A

Telesat has higher revenue and earnings than Metro One Telecommunications.

Volatility & Risk

Telesat has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500. Comparatively, Metro One Telecommunications has a beta of 4.27, meaning that its share price is 327% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Telesat and Metro One Telecommunications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	0	1	0	0	2.00
Metro One Telecommunications	0	0	0	0	N/A

Telesat currently has a consensus price target of $9.00, suggesting a potential downside of 1.10%. Given Telesat’s higher possible upside, analysts plainly believe Telesat is more favorable than Metro One Telecommunications.

Summary

Telesat beats Metro One Telecommunications on 6 of the 8 factors compared between the two stocks.

About Telesat

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 Metro One Telecommunications

Metro One Telecommunications, Inc. provides mobile commerce platform that enables retailers to launch their own branded mobile application in the United States. Its Mobile Commerce Merchant Platform allows small and medium-sized business retailers and enterprises to launch a branded and functional mobile app; Mobile Commerce Enterprise Platform that enables enterprise retailers, who own and operates brick and mortar store, as well as e-commerce platforms to engage with their customer online and in-store through the customer's mobile application; and Instore engagement Suite solutions. The company was formerly known as Metro One Direct Information Services Inc. and changed its name to Metro One Telecommunications, Inc. in December 1995. Metro One Telecommunications, Inc. was incorporated in 1989 and is based in Sheridan, Wyoming.