ATN International (NASDAQ:ATNI) and Shenandoah Telecommunications (NASDAQ:SHEN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Earnings and Valuation
This table compares ATN International and Shenandoah Telecommunications' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ATN International | $438.72 million | 1.76 | $-10,810,000.00 | ($0.11) | -442.55 |
| Shenandoah Telecommunications | $633.91 million | 3.49 | $54.94 million | $1.10 | 40.32 |
Shenandoah Telecommunications has higher revenue and earnings than ATN International. ATN International is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ATN International has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Shenandoah Telecommunications has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.
Dividends
ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Shenandoah Telecommunications pays an annual dividend of $0.34 per share and has a dividend yield of 0.8%. ATN International pays out -618.2% of its earnings in the form of a dividend. Shenandoah Telecommunications pays out 30.9% 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 1 consecutive years. ATN International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares ATN International and Shenandoah Telecommunications' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ATN International | -0.76% | 0.68% | 0.49% |
| Shenandoah Telecommunications | 16.88% | 11.44% | 3.03% |
Analyst Ratings
This is a summary of current ratings and target prices for ATN International and Shenandoah Telecommunications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ATN International | 0 | 0 | 3 | 0 | 3.00 |
| Shenandoah Telecommunications | 0 | 3 | 0 | 0 | 2.00 |
ATN International currently has a consensus price target of $60.3333, indicating a potential upside of 23.94%. Shenandoah Telecommunications has a consensus price target of $49.50, indicating a potential upside of 11.61%. Given ATN International's stronger consensus rating and higher probable upside, analysts plainly believe ATN International is more favorable than Shenandoah Telecommunications.
Insider & Institutional Ownership
64.6% of ATN International shares are held by institutional investors. Comparatively, 53.4% of Shenandoah Telecommunications shares are held by institutional investors. 4.2% of ATN International shares are held by insiders. Comparatively, 4.3% of Shenandoah Telecommunications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Shenandoah Telecommunications beats ATN International on 10 of the 17 factors compared between the two stocks.
