IDT (NYSE: IDT) and Atento (NYSE:ATTO) are both small-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Dividends

IDT pays an annual dividend of $0.36 per share and has a dividend yield of 5.8%. Atento pays an annual dividend of $0.34 per share and has a dividend yield of 4.2%. Atento pays out 45.3% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
IDT -0.89% 0.04% 0.01%
Atento -1.43% 12.91% 3.67%

Valuation & Earnings

This table compares IDT and Atento’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IDT $1.50 billion 0.10 $8.17 million N/A N/A
Atento $1.92 billion 0.31 -$16.79 million $0.75 10.73

IDT has higher earnings, but lower revenue than Atento.

Institutional and Insider Ownership

46.8% of IDT shares are held by institutional investors. Comparatively, 95.7% of Atento shares are held by institutional investors. 20.5% of IDT shares are held 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.

Analyst Ratings

This is a summary of current recommendations and price targets for IDT and Atento, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDT 0 1 0 0 2.00
Atento 0 2 2 0 2.50

Atento has a consensus target price of $12.38, suggesting a potential upside of 53.73%. Given Atento’s stronger consensus rating and higher probable upside, analysts plainly believe Atento is more favorable than IDT.

Risk & Volatility

IDT has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Atento has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Summary

Atento beats IDT on 8 of the 14 factors compared between the two stocks.

IDT Company Profile

IDT Corporation, through its subsidiaries, operates primarily in the telecommunications and payment industries in the United States and internationally. It operates in three segments: Telecom Platform Services, Unified Communications as a Service, and Consumer Phone Services. The Telecom Platform Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; payment offerings, such as international and domestic airtime top-up, and international money transfer services; and wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers. The Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cable telephony services; cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services that support inbound and outbound domestic and international calling from an IP PBX; and PicuP, an automated business phone service that answers, routes, and manages voice calls. This segment also offers its services through distributors, system integrators, and master agents. The Consumer Phone Services segment provides bundled local/long distance phone services, including unlimited local, regional toll and domestic long distance calling, and calling features under the IDT America brand name to residential customers. As of July 31, 2017, this segment had approximately 3,500 active customers for its bundled local/long distance plans and approximately 14,500 customers for its long distance-only plans. The company is also involved in real estate holdings and other businesses. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

Atento Company Profile

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 Luxembourg.

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