Head to Head Analysis: KORE Group (NYSE:KORE) and Telesat (NASDAQ:TSAT)

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

Profitability

This table compares Telesat and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telesat	7.99%	-3.20%	-1.25%
KORE Group	-74.03%	-389.39%	-15.95%

Valuation and Earnings

This table compares Telesat and KORE Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telesat	$521.59 million	0.31	$116.39 million	$2.43	4.89
KORE Group	$276.61 million	0.13	-$167.04 million	($11.56)	-0.17

Telesat has higher revenue and earnings than KORE Group. KORE Group is trading at a lower price-to-earnings ratio than Telesat, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Telesat has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, KORE Group has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Telesat and KORE Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telesat	0	1	0	0	2.00
KORE Group	0	1	1	0	2.50

Telesat presently has a consensus target price of $9.00, indicating a potential downside of 24.24%. KORE Group has a consensus target price of $9.75, indicating a potential upside of 394.92%. Given KORE Group’s stronger consensus rating and higher probable upside, analysts plainly believe KORE Group is more favorable than Telesat.

Institutional and Insider Ownership

57.5% of KORE Group shares are held by institutional investors. 40.6% of Telesat shares are held by insiders. Comparatively, 30.6% of KORE Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Telesat beats KORE Group on 9 of the 14 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 KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.