Reviewing ATN International (ATNI) and Verizon Communications (VZ)
ATN International (NASDAQ: ATNI) and Verizon Communications (NYSE:VZ) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
58.4% of ATN International shares are held by institutional investors. Comparatively, 63.4% of Verizon Communications shares are held by institutional investors. 32.7% of ATN International shares are held by insiders. Comparatively, 0.1% of Verizon Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for ATN International and Verizon Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ATN International presently has a consensus target price of $57.00, indicating a potential upside of 3.94%. Verizon Communications has a consensus target price of $50.67, indicating a potential downside of 0.82%. Given ATN International’s higher possible upside, equities analysts clearly believe ATN International is more favorable than Verizon Communications.
ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 4.6%. ATN International pays out -111.5% of its earnings in the form of a dividend. Verizon Communications pays out 60.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ATN International has raised its dividend for 15 consecutive years and Verizon Communications has raised its dividend for 10 consecutive years.
This table compares ATN International and Verizon Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
ATN International has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
Valuation and Earnings
This table compares ATN International and Verizon Communications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ATN International||$457.00 million||1.92||$12.10 million||($0.61)||-89.90|
|Verizon Communications||$125.98 billion||1.65||$13.13 billion||$3.90||13.10|
Verizon Communications has higher revenue and earnings than ATN International. ATN International is trading at a lower price-to-earnings ratio than Verizon Communications, indicating that it is currently the more affordable of the two stocks.
Verizon Communications beats ATN International on 10 of the 17 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.
Verizon Communications Company Profile
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.
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