Frontier Communications Corporation (NASDAQ: FTR) and ATN International (NASDAQ:ATNI) are both small-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 18.6%. ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.5%. Frontier Communications Corporation pays out -16.6% of its earnings in the form of a dividend. 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. ATN International has increased its dividend for 15 consecutive years. Frontier Communications Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Frontier Communications Corporation $9.59 billion 0.11 $3.74 billion ($14.42) -0.90
ATN International $518.69 million 1.69 $159.87 million $1.36 39.89

Frontier Communications Corporation has higher revenue and earnings than ATN International. Frontier Communications 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.

Risk and Volatility

Frontier Communications Corporation has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Frontier Communications Corporation and ATN International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frontier Communications Corporation 2 9 2 0 2.00
ATN International 0 1 1 0 2.50

Frontier Communications Corporation currently has a consensus target price of $7.33, suggesting a potential downside of 43.29%. ATN International has a consensus target price of $57.00, suggesting a potential upside of 5.07%. Given ATN International’s stronger consensus rating and higher probable upside, analysts clearly believe ATN International is more favorable than Frontier Communications Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Frontier Communications Corporation -9.35% -1.28% -0.19%
ATN International 4.29% 2.74% 1.87%

Insider & Institutional Ownership

59.2% of ATN International shares are owned by institutional investors. 0.9% of Frontier Communications Corporation shares are owned by company insiders. Comparatively, 32.7% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

ATN International beats Frontier Communications Corporation on 11 of the 16 factors compared between the two stocks.

About Frontier Communications Corporation

Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE). The Company offers a range of broadband services. The principal residential service it provides is broadband Internet service. Its commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching (MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. It also offers wireless broadband services (using unlicensed spectrum) in various markets utilizing networks that it owns or operates. In addition, the Company offers its Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance.

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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