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  5. MDA: Down 30% on MDA, its been frustrating with the news of contract losses in the last few months, etc. [MDA Space Ltd.]
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Investment Q&A

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Q: Down 30% on MDA, its been frustrating with the news of contract losses in the last few months, etc... Can you compare MDA vs TSAT. Would look to either fully sell MDA or trim MDA and buy some TSAT as a tax loss proxy. MDA still has good rev growth and backlog and you seem to like TSAT as you recently added more. What would you do? Thanks!
Asked by Keith on December 03, 2025
5i Research Answer:

The two companies are at different stages of maturity. MDA is an established operator and defence company. They have certainly had some hiccups with contracts but growth is still attractive and they should benefit from some government programs if they come to fruition. Meanwhile, it offers an attractive valuation at these levels. 

TSAT is in more of a transition from the declining GEO business to their LEO business which will take time and capital, but it does have a growing backlog for its LEO segment. While the case can be made here for a tax-loss strategy, the switch would be to a different risk profile and with space exposure already through MDA, we don't think a change 'needs' to be made here, but for an investor seeking potentially stronger growth, but with a slightly more 'risky business profile', we would be OK with switching some over.