Atento (NYSE:ATTO) and ATN International (NASDAQ:ATNI) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Atento has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.
This table compares Atento and ATN International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
92.4% of Atento shares are held by institutional investors. Comparatively, 65.9% of ATN International shares are held by institutional investors. 32.8% of ATN International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Atento and ATN International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Atento||$1.92 billion||0.25||-$16.79 million||$0.75||8.59|
|ATN International||$481.19 million||2.75||$31.48 million||$2.18||38.07|
ATN International has lower revenue, but higher earnings than Atento. Atento is trading at a lower price-to-earnings ratio than ATN International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Atento and ATN International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Atento presently has a consensus price target of $11.50, indicating a potential upside of 78.57%. ATN International has a consensus price target of $61.33, indicating a potential downside of 26.10%. Given Atento’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Atento is more favorable than ATN International.
Atento pays an annual dividend of $0.34 per share and has a dividend yield of 5.3%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 0.8%. Atento pays out 45.3% of its earnings in the form of a dividend. ATN International pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Atento beats ATN International on 9 of the 16 factors compared between the two stocks.
Atento S.A., together with its subsidiaries, provides customer relationship management and business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa. It offers a range of front and back-end services, including sales, customer care, collections, back office, applications-processing, credit-management, and technical support services. The company serves clients primarily in the telecommunications and financial services sectors; and in multi-sectors, including consumer goods, retail, public administration, healthcare, travel, and transportation and logistics, as well as technology and media. It provides its services and solutions through digital channels, which include SMS, email, chats, social media and apps, and others, as well as through voice and in-person. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Findel, Luxembourg.
About ATN International
ATN International, Inc., through its subsidiaries, provides wireless and wireline telecommunications services in North America, Bermuda, and the Caribbean. It operates through U.S. Telecom, International Telecom, and Renewable Energy segments. The company offers wholesale wireless voice and data roaming services; wireline local telephone and data, video, and long-distance voice services; and facilities-based integrated voice and data communications, and wholesale transport services to enterprise and residential customers. It also provides wireless devices and accessories, including smartphones, feature phones, wireless hot spots, and various wireless solutions for small businesses; and sells original equipment manufacturer and after-market accessories, such as phone protection, battery charging solutions, and Bluetooth hands-free kits. In addition, the company develops, owns, and operates commercial distributed generation solar power systems; and owns and operates terrestrial and submarine fiber optic transport systems. It offers its services through direct sales force, retail stores, and independent dealers. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.
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