Nippon Telegraph & Telephone (OTCMKTS:NTTYY) and Atento (NYSE:ATTO) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Nippon Telegraph & Telephone pays an annual dividend of $1.67 per share and has a dividend yield of 3.5%. Atento does not pay a dividend. Nippon Telegraph & Telephone pays out 41.8% of its earnings in the form of a dividend.

Profitability

This table compares Nippon Telegraph & Telephone and Atento’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nippon Telegraph & Telephone 7.07% 7.23% 3.85%
Atento -2.03% 9.19% 2.17%

Earnings & Valuation

This table compares Nippon Telegraph & Telephone and Atento’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nippon Telegraph & Telephone $107.88 billion 0.87 $7.69 billion $4.00 11.80
Atento $1.82 billion 0.09 $18.54 million $0.77 3.00

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nippon Telegraph & Telephone and Atento, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nippon Telegraph & Telephone 0 1 0 0 2.00
Atento 0 1 3 0 2.75

Atento has a consensus price target of $6.33, indicating a potential upside of 174.17%. Given Atento’s stronger consensus rating and higher probable upside, analysts clearly believe Atento is more favorable than Nippon Telegraph & Telephone.

Risk and Volatility

Nippon Telegraph & Telephone has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Atento has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of Nippon Telegraph & Telephone shares are owned by institutional investors. Comparatively, 83.7% of Atento shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Nippon Telegraph & Telephone beats Atento on 8 of the 15 factors compared between the two stocks.

About Nippon Telegraph & Telephone

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, system integration, and other services in Japan and internationally. It operates through five segments: Regional Communications Business, Long Distance and International Communications Business, Mobile Communications Business, Data Communications Business, and Other Business. The company offers inter-prefectural communications services, services related to the international communications and solutions business, and related services; mobile phone and related services; and network system and system integration services. It also provides IT system building and maintenance support for corporations; professional security, ICT, data center-related, teleconference, Web conference, video conference, Internet connection, video distribution, and smart life area services; and consulting, and system design and development services. In addition, the company engages in the acquisition, development, leasing, and management of real estate properties; lease and installment sales of telecommunications-related devices; billing and collection of charges for communications and other services; and design, management, and maintenance of buildings, equipment, and electric power facilities. Further, it is involved in the development, production, operation, and maintenance of information communications systems and software; and technology transfer and consulting activities, as well as provision of credit card transaction settlement services. Additionally, the company operates office, retail, and residential properties under the Wellith brand; hotels and resorts; and shared-office properties that include daycare facilities and office spaces. As of March 31, 2018, it had 19,869 thousand fixed line subscriptions. The company was founded in 1952 and is headquartered in Tokyo, Japan.

About Atento

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 Findel, Luxembourg.

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