Head-To-Head Analysis: ATN International (ATNI) & AT&T (T)

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

Institutional and Insider Ownership

60.0% of ATN International shares are owned by institutional investors. Comparatively, 55.3% of AT&T shares are owned by institutional investors. 32.7% of ATN International shares are owned by company insiders. Comparatively, 0.1% of AT&T shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

ATN International has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

This table compares ATN International and AT&T’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATN International 2.68% 2.09% 1.47%
AT&T 7.77% 14.22% 4.37%

Earnings and Valuation

This table compares ATN International and AT&T’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ATN International $495.43 million 2.16 $155.96 million $0.81 81.64
AT&T $162.62 billion 1.38 $48.95 billion $2.04 17.84

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

Dividends

ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.1%. AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.4%. ATN International pays out 167.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AT&T pays out 96.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ATN International has raised its dividend for 32 consecutive years and AT&T has raised its dividend for 15 consecutive years. AT&T is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for ATN International and AT&T, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATN International 0 0 1 0 3.00
AT&T 0 17 11 0 2.39

AT&T has a consensus target price of $44.00, indicating a potential upside of 20.91%. Given AT&T’s higher possible upside, analysts clearly believe AT&T is more favorable than ATN International.

Summary

AT&T beats ATN International on 10 of the 17 factors compared between the two stocks.

About ATN International

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.

About AT&T

AT&T Inc. is a holding company. The Company is a provider of communications and digital entertainment services in the United States and the world. The Company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Company offers its services and products to consumers in the United States, Mexico and Latin America and to businesses and other providers of telecommunications services worldwide. It also owns and operates three regional TV sports networks, and retains non-controlling interests in another regional sports network and a network dedicated to game-related programming, as well as Internet interactive game playing. Its services and products include wireless communications, data/broadband and Internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services. Its subsidiaries include AT&T Mobility and SKY Brasil Servicos Ltda.

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