Echostar (SATS) versus Digital Ally (DGLY) Critical Survey

Echostar (NASDAQ:SATS) and Digital Ally (NASDAQ:DGLY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Echostar and Digital Ally’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echostar $1.89 billion 2.34 $392.56 million $0.84 54.74
Digital Ally $12.77 million 1.72 -$12.25 million ($1.50) -1.90

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

Profitability

This table compares Echostar and Digital Ally’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echostar 20.03% 1.71% 0.80%
Digital Ally -112.99% -1,999.82% -86.43%

Institutional and Insider Ownership

47.6% of Echostar shares are owned by institutional investors. Comparatively, 4.2% of Digital Ally shares are owned by institutional investors. 73.5% of Echostar shares are owned by insiders. Comparatively, 19.8% of Digital Ally shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Echostar and Digital Ally, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echostar 0 1 1 0 2.50
Digital Ally 0 1 1 0 2.50

Echostar currently has a consensus price target of $73.00, suggesting a potential upside of 58.76%. Digital Ally has a consensus price target of $4.50, suggesting a potential upside of 57.89%. Given Echostar’s higher probable upside, analysts plainly believe Echostar is more favorable than Digital Ally.

Risk and Volatility

Echostar has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Digital Ally has a beta of 3.01, indicating that its share price is 201% more volatile than the S&P 500.

Summary

Echostar beats Digital Ally on 11 of the 12 factors compared between the two stocks.

About Echostar

EchoStar Corporation provides satellite service operations and video delivery solutions worldwide. It operates in two segments, Hughes and EchoStar Satellite Services. The Hughes segments offers broadband satellite technologies and Internet services for home and small office customers; and broadband network technologies, managed services, equipment, hardware, satellite services, and communication solutions for aeronautical, enterprise, and government customers, as well as consumers. This segment also designs, provides, and installs gateways and terminal equipment for other satellite systems; and provides satellite ground segment systems and terminals to mobile system operators. The EchoStar Satellite Services segment offers satellite service operations and video delivery solutions on a full-time and occasional-use basis primarily to corporates, the United States government service providers, Internet service providers, broadcast news organizations, programmers, and private enterprise customers. As of December 31, 2017, the company operated through a fleet of 19 owned and leased in-orbit satellites. EchoStar Corporation was founded in 2007 and is headquartered in Englewood, Colorado.

About Digital Ally

Digital Ally, Inc. produces and sells digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Its digital audio/video recording, storage, and other products include an in-car digital audio/video recorder that is contained in a rear view mirror for law enforcement vehicles and commercial fleets; and hands-free automatic activated body-worn cameras and in-car video systems, as well as provides its law enforcement customers with audio/video surveillance from multiple vantage points. The company also provides VuLink, an in-car device that enables an in-car and body worn digital audio/video camera system to automatically and simultaneously start recording; and Digital Ally, a suite of data management Web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. In addition, its digital audio/video recording, storage, and other products comprise a miniature body-worn digital video system; VuVault.net, a law enforcement cloud storage solution, including cloud-based fleet management and driver monitoring/training applications; and FleetVU Manager, a Web-based software for commercial fleet tracking and monitoring. The company sells its products through direct sales and third-party distributors. Digital Ally, Inc. is headquartered in Lenexa, Kansas.

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