Maxar Technologies (MAXR) & ViaSat (VSAT) Critical Survey

Maxar Technologies (NYSE: MAXR) and ViaSat (NASDAQ:VSAT) are both mid-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Institutional & Insider Ownership

75.1% of Maxar Technologies shares are held by institutional investors. 7.7% of ViaSat 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.

Dividends

Maxar Technologies pays an annual dividend of $1.14 per share and has a dividend yield of 2.3%. ViaSat does not pay a dividend. Maxar Technologies pays out 53.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Maxar Technologies and ViaSat, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxar Technologies 0 2 6 0 2.75
ViaSat 2 3 4 0 2.22

Maxar Technologies currently has a consensus target price of $65.13, suggesting a potential upside of 31.14%. ViaSat has a consensus target price of $73.38, suggesting a potential upside of 13.08%. Given Maxar Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Maxar Technologies is more favorable than ViaSat.

Profitability

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

Net Margins Return on Equity Return on Assets
Maxar Technologies 6.65% 10.52% 3.31%
ViaSat -4.22% -2.56% -1.44%

Valuation and Earnings

This table compares Maxar Technologies and ViaSat’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxar Technologies $1.26 billion 2.23 $100.40 million $2.13 23.31
ViaSat $1.59 billion 2.40 -$67.30 million ($0.86) -75.45

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

Summary

Maxar Technologies beats ViaSat on 11 of the 15 factors compared between the two stocks.

Maxar Technologies Company Profile

Maxar Technologies Ltd., a space and geospatial intelligence company, provides satellites, earth imagery, geospatial data, and analytics for the commercial and government customers worldwide. The company operates through three segments: Space Systems, Imagery, and Services. The Space Systems segment supplies space and ground based infrastructure and information solutions, including communication and imaging satellites, payloads and antenna subsystems, space-based and airborne surveillance solutions, and associated ground infrastructure and support services for communications and surveillance and intelligence applications. This segment also offers a range of services, such as television and radio distribution, broadband Internet, and mobile communications in the communications market; and spacecraft and subsystems for the U.S. government and other customers, as well as robotic systems for the space and terrestrial markets. It serves government agencies, communication satellite operators, and communication satellite manufacturers. The Imagery segment supplies integrated electro-optical and radar imagery products for the U.S., Canadian, and other international government agencies, such as defense and intelligence, as well as commercial customers in various markets. The Services segment provides geospatial products and services for the U.S. government, as well as for other international governments for intelligence, global development organizations, and commercial customers. The company was formerly known as MacDonald, Dettwiler and Associates Ltd. and changed its name to Maxar Technologies Ltd. in October 2017. Maxar Technologies Ltd. was founded in 1969 and is based in Westminster, Colorado.

ViaSat Company Profile

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers fixed broadband services, including broadband Internet access and voice over Internet protocol services under the Exede and WildBlue brands to consumers and businesses; in-flight Internet and aviation software services to commercial airlines; mobile broadband services comprising network management and high-speed Internet connectivity services for customers using airborne, maritime, and ground mobile satellite systems; and enterprise broadband services. As of March 31, 2017, this segment provided broadband Internet services to approximately 659,000 consumer and small business subscribers. Its Commercial Networks segment offers fixed satellite networks comprising satellite network infrastructure and ground terminals designed to access Ka-band broadband services; mobile broadband satellite communication systems; and antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas. This segment also provides design and technology services, including analysis, design, development, and specification of satellites and ground systems; ASIC and MMIC design; and wide area network compression for enterprise networks. The company's Government Systems segment offers government satellite communication systems, including various mobile and fixed broadband modems, terminals, network access control systems, and antenna systems; cybersecurity and information assurance products and services; and tactical radio and information distribution systems to enable real-time collection and dissemination of secure real-time digital information between command centers, communications nodes, ground and maritime platforms, and airborne intelligence and defense platforms. Viasat, Inc. was founded in 1986 and is headquartered in Carlsbad, California.

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