ATN International (ATNI) versus Frontier Communications Corporation (FTR) Financial Survey

ATN International (NASDAQ: ATNI) and Frontier Communications Corporation (NASDAQ:FTR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares ATN International and Frontier Communications Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ATN International $518.69 million 1.62 $159.87 million $1.36 38.13
Frontier Communications Corporation $9.59 billion 0.11 $3.74 billion ($14.42) -0.91

Frontier Communications Corporation has higher revenue and earnings than ATN International. Frontier Communications Corporation 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 2.6%. Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 18.3%. ATN International pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Frontier Communications Corporation pays out -16.6% of its earnings in the form of a dividend. Frontier Communications Corporation has increased its dividend for 15 consecutive years. Frontier Communications Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ATN International and Frontier Communications Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATN International 0 1 1 0 2.50
Frontier Communications Corporation 2 9 2 0 2.00

ATN International presently has a consensus price target of $57.00, suggesting a potential upside of 9.93%. Frontier Communications Corporation has a consensus price target of $7.33, suggesting a potential downside of 44.11%. Given ATN International’s stronger consensus rating and higher probable upside, equities analysts clearly believe ATN International is more favorable than Frontier Communications Corporation.

Risk and Volatility

ATN International has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Frontier Communications Corporation has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

59.2% of ATN International shares are held by institutional investors. 32.7% of ATN International shares are held by insiders. Comparatively, 0.9% of Frontier Communications Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
ATN International 4.29% 2.74% 1.87%
Frontier Communications Corporation -9.35% -1.28% -0.19%

Summary

ATN International beats Frontier Communications Corporation on 10 of the 16 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.

Frontier Communications Corporation Company Profile

Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE). The Company offers a range of broadband services. The principal residential service it provides is broadband Internet service. Its commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching (MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. It also offers wireless broadband services (using unlicensed spectrum) in various markets utilizing networks that it owns or operates. In addition, the Company offers its Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance.

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