Atento (NYSE: ATTO) and Checkpoint Systems (NYSE:CKP) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Dividends

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Atento pays an annual dividend of $0.34 per share and has a dividend yield of 4.0%. Checkpoint Systems does not pay a dividend. Atento pays out -154.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

95.1% of Atento shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Atento has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500. Comparatively, Checkpoint Systems has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares Atento and Checkpoint Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atento -0.88% 13.19% 3.94%
Checkpoint Systems -27.26% -50.16% -20.24%

Earnings & Valuation

This table compares Atento and Checkpoint Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atento $1.92 billion 0.33 $60,000.00 ($0.22) -38.50
Checkpoint Systems N/A N/A N/A ($1.32) -7.68

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Atento and Checkpoint Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atento 0 1 2 0 2.67
Checkpoint Systems 0 0 0 0 N/A

Atento presently has a consensus target price of $13.00, suggesting a potential upside of 53.48%. Given Atento’s higher possible upside, research analysts clearly believe Atento is more favorable than Checkpoint Systems.

Summary

Atento beats Checkpoint Systems on 11 of the 12 factors compared between the two stocks.

About Atento

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.

About Checkpoint Systems

Checkpoint Systems, Inc. is a United States-based supplier of merchandise availability solutions for the retail industry. The Company provides end-to-end solutions enabling retailers to achieve real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft. It offers merchandise availability solutions, such as shrink management, including antennas, labels and tags, source tagging, deactivation, remote service and support, and Alpha High Theft Solutions, and merchandise visibility solutions, including inventory management, asset tracking and OneTag Program. OneTag Program allows retailers to obtain the benefits of inventory visibility and loss prevention with a single radio frequency identification tag. It offers apparel labelling solutions, such as Trim, including woven labels, printed fabric labels and specialty trim services, and brand merchandising, including printed items and self-adhesive. It serves markets, such as electronics and grocery.

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