Atento (NYSE: ATTO) and Genpact Limited (NYSE:G) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.
Risk and Volatility
Atento has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Genpact Limited has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
This table compares Atento and Genpact Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Atento and Genpact Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Atento||$1.81 billion||0.49||$196.99 million||$0.19||62.63|
|Genpact Limited||$2.62 billion||2.16||$438.33 million||$1.33||22.05|
Genpact Limited has higher revenue and earnings than Atento. Genpact Limited is trading at a lower price-to-earnings ratio than Atento, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.7% of Atento shares are owned by institutional investors. Comparatively, 92.3% of Genpact Limited shares are owned by institutional investors. 1.6% of Genpact Limited shares are owned 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.
Genpact Limited pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Atento does not pay a dividend. Genpact Limited pays out 18.0% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for Atento and Genpact Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Atento currently has a consensus price target of $13.50, indicating a potential upside of 13.45%. Genpact Limited has a consensus price target of $30.20, indicating a potential upside of 3.00%. Given Atento’s higher probable upside, equities research analysts plainly believe Atento is more favorable than Genpact Limited.
Genpact Limited beats Atento on 12 of the 16 factors compared between the two stocks.
Atento Company Profile
Atento S.A. is a provider of customer-relationship management and business-process outsourcing (CRM BPO) services and solutions in Latin America. The Company offers a portfolio of CRM BPO services, including customer care, sales, collections, back office and technical support. The Company operates through three segments: EMEA, Americas and Brazil. Its services and solutions are delivered across multiple channels including digital (short message service (SMS), e-mail, chats, social media and applications, among others) and voice, and are enabled by process design, technology and intelligence functions. The Company also has client relationships across a range of industries working in sectors, such as telecommunications, banking and financial services and multi-sector, which comprise the consumer goods, services, public administration, pay television, healthcare, transportation, technology and media industries.
Genpact Limited Company Profile
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.
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