Head to Head Comparison: Spirent Communications (SPMYY) vs. Atento (ATTO)

Spirent Communications (OTCMKTS:SPMYY) and Atento (NYSE:ATTO) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility and Risk

Spirent Communications has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Atento has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Institutional and Insider Ownership

88.7% of Atento shares are owned by institutional investors. 1.0% of Spirent Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Spirent Communications and Atento’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirent Communications $454.80 million 2.00 $29.00 million $0.30 19.80
Atento $1.92 billion 0.18 -$16.79 million $0.75 6.20

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Spirent Communications and Atento, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirent Communications 0 0 0 0 N/A
Atento 0 1 2 0 2.67

Atento has a consensus price target of $10.17, suggesting a potential upside of 118.64%. Given Atento’s higher possible upside, analysts plainly believe Atento is more favorable than Spirent Communications.

Profitability

This table compares Spirent Communications and Atento’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirent Communications N/A N/A N/A
Atento -0.31% 16.17% 4.38%

Dividends

Spirent Communications pays an annual dividend of $0.12 per share and has a dividend yield of 2.0%. Atento does not pay a dividend. Spirent Communications pays out 40.0% of its earnings in the form of a dividend.

Summary

Atento beats Spirent Communications on 8 of the 15 factors compared between the two stocks.

About Spirent Communications

Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. The company operates through three segments: Networks & Security, Lifecycle Service Assurance, and Connected Devices. The Networks & Security segment develops performance and security test systems to accelerate the development of new devices, networks, and applications for high-speed Ethernet/IP, mobile, and global satellite navigation systems. The Lifecycle Service Assurance segment develops active test and analytics solutions for service turn-up, network performance improvement, and customer experience management. The Connected Devices develops automated test systems; and offers services to test new devices in the lab or on networks. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

About Atento

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.

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