Atento (NYSE: ATTO) and Ituran Location and Control (NASDAQ:ITRN) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Atento and Ituran Location and Control’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atento $1.83 billion 0.45 $196.76 million $0.25 44.60
Ituran Location and Control $218.77 million 3.55 $65.10 million $1.95 19.00

Atento has higher revenue and earnings than Ituran Location and Control. Ituran Location and Control is trading at a lower price-to-earnings ratio than Atento, indicating that it is currently the more affordable of the two stocks.

Dividends

Ituran Location and Control pays an annual dividend of $0.96 per share and has a dividend yield of 2.6%. Atento does not pay a dividend. Ituran Location and Control pays out 49.2% of its earnings in the form of a dividend.

Profitability

This table compares Atento and Ituran Location and Control’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atento 0.99% 11.96% 3.58%
Ituran Location and Control 18.67% 36.12% 22.00%

Insider and Institutional Ownership

95.7% of Atento shares are owned by institutional investors. Comparatively, 51.8% of Ituran Location and Control shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Atento and Ituran Location and Control, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atento 0 1 2 0 2.67
Ituran Location and Control 0 0 1 0 3.00

Atento currently has a consensus price target of $14.50, indicating a potential upside of 30.04%. Ituran Location and Control has a consensus price target of $31.00, indicating a potential downside of 16.33%. Given Atento’s higher possible upside, research analysts plainly believe Atento is more favorable than Ituran Location and Control.

Risk & Volatility

Atento has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

Ituran Location and Control beats Atento on 9 of the 15 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.

Ituran Location and Control Company Profile

Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.

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