Reviewing ViaSat (VSAT) and TESSCO Technologies (TESS)

ViaSat (NASDAQ: VSAT) and TESSCO Technologies (NASDAQ:TESS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ViaSat and TESSCO Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ViaSat 1 5 6 0 2.42
TESSCO Technologies 0 0 0 0 N/A

ViaSat currently has a consensus price target of $73.80, indicating a potential downside of 4.70%. Given ViaSat’s higher possible upside, analysts plainly believe ViaSat is more favorable than TESSCO Technologies.

Earnings & Valuation

This table compares ViaSat and TESSCO Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ViaSat $1.56 billion 2.89 $23.76 million ($0.21) -368.76
TESSCO Technologies $533.29 million 0.35 $1.44 million $0.38 59.08

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

Volatility & Risk

ViaSat has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Institutional & Insider Ownership

99.4% of ViaSat shares are held by institutional investors. Comparatively, 58.3% of TESSCO Technologies shares are held by institutional investors. 7.7% of ViaSat shares are held by insiders. Comparatively, 26.9% of TESSCO Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ViaSat and TESSCO Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ViaSat -0.75% 0.13% 0.08%
TESSCO Technologies 0.57% 3.43% 1.96%

Dividends

TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. ViaSat does not pay a dividend. TESSCO Technologies pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TESSCO Technologies beats ViaSat on 8 of the 15 factors compared between the two stocks.

About ViaSat

ViaSat, Inc. is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The commercial networks segment develops and produces a range of end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems. The government systems segment develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, which are designed to enable the collection and dissemination of real-time digital information between command centers, communications nodes and air defense systems.

About TESSCO Technologies

TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.

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