TELUS Corporation (NYSE: TU) and ATN International (NASDAQ:ATNI) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for TELUS Corporation and ATN International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELUS Corporation 0 1 4 0 2.80
ATN International 0 1 1 0 2.50

TELUS Corporation currently has a consensus price target of $42.50, indicating a potential upside of 20.12%. ATN International has a consensus price target of $57.00, indicating a potential downside of 4.19%. Given TELUS Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TELUS Corporation is more favorable than ATN International.

Institutional & Insider Ownership

52.5% of TELUS Corporation shares are owned by institutional investors. Comparatively, 58.8% of ATN International shares are owned by institutional investors. 32.7% of ATN International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

TELUS Corporation has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares TELUS Corporation and ATN International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TELUS Corporation $10.21 billion 2.05 $3.33 billion $1.64 21.57
ATN International $518.69 million 1.86 $159.87 million $1.36 43.74

TELUS Corporation has higher revenue and earnings than ATN International. TELUS Corporation is trading at a lower price-to-earnings ratio than ATN International, indicating that it is currently the more affordable of the two stocks.

Dividends

TELUS Corporation pays an annual dividend of $1.46 per share and has a dividend yield of 4.1%. ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.3%. TELUS Corporation pays out 89.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ATN International pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TELUS Corporation has raised its dividend for 15 consecutive years. TELUS Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares TELUS Corporation and ATN International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TELUS Corporation 9.96% 19.11% 5.58%
ATN International 4.29% 2.74% 1.87%

Summary

TELUS Corporation beats ATN International on 14 of the 17 factors compared between the two stocks.

About TELUS Corporation

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

About ATN International

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.

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