Financial Survey: Intelsat (I) vs. The Competition

Intelsat (NYSE: I) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its competitors? We will compare Intelsat to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Intelsat and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intelsat 0 2 2 0 2.50
Intelsat Competitors 509 1567 1747 56 2.35

Intelsat currently has a consensus target price of $4.38, suggesting a potential downside of 33.10%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 19.28%. Given Intelsat’s competitors higher probable upside, analysts clearly believe Intelsat has less favorable growth aspects than its competitors.

Profitability

This table compares Intelsat and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intelsat 36.95% -1.90% -0.14%
Intelsat Competitors -994.31% 4.82% -5.08%

Earnings and Valuation

This table compares Intelsat and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Intelsat $2.17 billion $1.61 billion 0.97
Intelsat Competitors $27.19 billion $8.09 billion 7.38

Intelsat’s competitors have higher revenue and earnings than Intelsat. Intelsat is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

38.0% of Intelsat shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Intelsat has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Intelsat’s competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Summary

Intelsat competitors beat Intelsat on 8 of the 13 factors compared.

About Intelsat

Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.

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