Atento (NYSE: ATTO) and Interpace Diagnostics Group (NASDAQ:IDXG) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares Atento and Interpace Diagnostics Group’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 47.40
Interpace Diagnostics Group $13.76 million 2.38 -$10.89 million ($0.96) -1.54

Atento has higher revenue and earnings than Interpace Diagnostics Group. Interpace Diagnostics Group is trading at a lower price-to-earnings ratio than Atento, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Atento and Interpace Diagnostics Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atento 0 1 2 0 2.67
Interpace Diagnostics Group 0 0 1 0 3.00

Atento currently has a consensus target price of $14.50, indicating a potential upside of 22.36%. Interpace Diagnostics Group has a consensus target price of $5.00, indicating a potential upside of 237.84%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, analysts plainly believe Interpace Diagnostics Group is more favorable than Atento.

Insider & Institutional Ownership

95.7% of Atento shares are held by institutional investors. Comparatively, 7.4% of Interpace Diagnostics Group shares are held by institutional investors. 0.7% of Interpace Diagnostics Group shares are held by company 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.

Volatility & Risk

Atento has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, Interpace Diagnostics Group has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares Atento and Interpace Diagnostics Group’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%
Interpace Diagnostics Group -162.18% -82.34% -49.80%

Summary

Atento beats Interpace Diagnostics Group on 8 of the 13 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 Interpace Diagnostics Group

Interpace Diagnostics Group, Inc., formerly PDI, Inc., is focused on developing and commercializing molecular diagnostic tests principally focused on early detection of high potential progressors to cancer and leveraging the latest technology and personalized medicine for patient diagnosis and management. The Company operates through molecular diagnostics segment. It offers molecular tests, such as PancraGen, which is a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment utilizing its PathFinder platform; ThyGenX, which assesses thyroid nodules for risk of malignancy, and ThyraMIR, which assesses thyroid nodules risk of malignancy utilizing a gene expression assay. Through its molecular diagnostics business, the Company provides diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers, which are focused on early detection of cancer.

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