Atento (NYSE: ATTO) and Brink’s Company (The) (NYSE:BCO) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Atento and Brink’s Company (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atento 0 1 2 0 2.67
Brink’s Company (The) 0 1 3 0 2.75

Atento currently has a consensus target price of $14.50, suggesting a potential upside of 22.88%. Brink’s Company (The) has a consensus target price of $86.00, suggesting a potential upside of 5.59%. Given Atento’s higher possible upside, equities analysts clearly believe Atento is more favorable than Brink’s Company (The).

Earnings & Valuation

This table compares Atento and Brink’s Company (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atento $1.83 billion 0.48 $196.76 million $0.25 47.20
Brink’s Company (The) $3.15 billion 1.31 $340.80 million $1.68 48.48

Brink’s Company (The) has higher revenue and earnings than Atento. Atento is trading at a lower price-to-earnings ratio than Brink’s Company (The), indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Atento has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500. Comparatively, Brink’s Company (The) has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Profitability

This table compares Atento and Brink’s Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atento 0.99% 11.96% 3.58%
Brink’s Company (The) 2.73% 34.49% 6.56%

Insider and Institutional Ownership

95.7% of Atento shares are owned by institutional investors. Comparatively, 89.7% of Brink’s Company (The) shares are owned by institutional investors. 10.4% of Brink’s Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Brink’s Company (The) pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. Atento does not pay a dividend. Brink’s Company (The) pays out 35.7% of its earnings in the form of a dividend.

Summary

Brink’s Company (The) beats Atento on 13 of the 16 factors compared between the two stocks.

About Atento

Atento S.A. is a provider of customer-relationship management and business-process outsourcing (CRM BPO) services and solutions in Latin America. The Company offers a portfolio of CRM BPO services, including customer care, sales, collections, back office and technical support. The Company operates through three segments: EMEA, Americas and Brazil. Its services and solutions are delivered across multiple channels including digital (short message service (SMS), e-mail, chats, social media and applications, among others) and voice, and are enabled by process design, technology and intelligence functions. The Company also has client relationships across a range of industries working in sectors, such as telecommunications, banking and financial services and multi-sector, which comprise the consumer goods, services, public administration, pay television, healthcare, transportation, technology and media industries.

About Brink’s Company (The)

The Brink’s Company (Brink’s) is a provider of logistics and security solutions. The Company operates through nine segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. The Company’s solutions include cash-in-transit (CIT), automated teller machine (ATM) replenishment and maintenance, cash management services, including vault outsourcing, money processing, and intelligent safe services, international transportation of valuables, and payment services. Its customers include financial institutions, retailers, government agencies (including central banks), mints, jewelers and other commercial operations around the world. As of December 31, 2016, the Company’s global network served customers in over 100 countries. Its services offerings include Core Services, High-Value Services and Other Security Services.

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