ATN International (ATNI) & Telefonica (TEF) Head-To-Head Review

ATN International (NASDAQ: ATNI) and Telefonica (NYSE:TEF) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for ATN International and Telefonica, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATN International 0 2 0 0 2.00
Telefonica 0 4 5 0 2.56

ATN International presently has a consensus price target of $57.00, suggesting a potential downside of 4.28%. Telefonica has a consensus price target of $11.40, suggesting a potential upside of 13.21%. Given Telefonica’s stronger consensus rating and higher possible upside, analysts clearly believe Telefonica is more favorable than ATN International.

Insider & Institutional Ownership

58.4% of ATN International shares are held by institutional investors. Comparatively, 0.9% of Telefonica shares are held by institutional investors. 32.7% of ATN International shares are held by insiders. Comparatively, 0.0% of Telefonica shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ATN International and Telefonica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATN International -1.93% 3.34% 2.26%
Telefonica 4.95% 29.25% 6.62%

Risk & Volatility

ATN International has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Telefonica has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Dividends

ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Telefonica pays an annual dividend of $0.17 per share and has a dividend yield of 1.7%. ATN International pays out -111.5% of its earnings in the form of a dividend. Telefonica pays out 34.7% 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. Telefonica has increased its dividend for 15 consecutive years. Telefonica is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares ATN International and Telefonica’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATN International $457.00 million 2.09 $12.10 million ($0.61) -97.62
Telefonica $57.59 billion 0.88 $2.62 billion $0.49 20.55

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

Summary

Telefonica beats ATN International on 12 of the 17 factors compared between the two stocks.

ATN International Company Profile

ATN International, Inc. (ATN), formerly Atlantic Tele-Network, Inc., is a holding company. The Company’s segments include U.S. Telecom, International Telecom and Renewable Energy. In the United States, it provides wholesale wireless voice and data roaming services in rural markets to national, regional, local and selected international wireless carriers. Its wholesale networks are located principally in the western United States. It provides wireless voice and data service to retail and business customers in Bermuda under the One name, in Guyana under the GTT name and in the United States Virgin Islands under the Innovative and Choice brand names. The Company offers voice services that include local exchange, regional and long distance calling and voice messaging services in Bermuda, Guyana, the United States Virgin Islands, and in other smaller markets in the Caribbean and the United States. It offers services, which include Wireless, Wireline and Renewable Energy.

Telefonica Company Profile

Telefonica, S.A. is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company’s operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela and Central America, Ecuador and Uruguay). These segments are engaged in activities relating to wireline, wireless, cable, data, Internet and television (TV) businesses and other digital services in accordance with each location. It offers a range of mobile and related services and products to personal and business customers. It offers traditional fixed telecommunication services, Internet and broadband multimedia services and data and business-solutions services. It offers a range of digital services, such as Internet of Things (IoT).

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