ATN International (NASDAQ: ATNI) and Shaw Communications (NYSE:SJR) are both telecommunications services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
58.4% of ATN International shares are held by institutional investors. Comparatively, 52.4% of Shaw Communications shares are held by institutional investors. 32.7% of ATN International shares are held by insiders. Comparatively, 1.0% of Shaw Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Shaw Communications pays an annual dividend of $0.94 per share and has a dividend yield of 4.1%. ATN International pays out -107.9% of its earnings in the form of a dividend. Shaw Communications pays out 70.7% 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 15 consecutive years.
Valuation and Earnings
This table compares ATN International and Shaw Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ATN International||$457.00 million||1.91||$12.10 million||($0.63)||-86.57|
|Shaw Communications||$3.70 billion||2.98||$644.63 million||$1.33||17.37|
Shaw Communications has higher revenue and earnings than ATN International. ATN International is trading at a lower price-to-earnings ratio than Shaw Communications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ATN International has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Shaw Communications has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for ATN International and Shaw Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ATN International currently has a consensus target price of $57.00, suggesting a potential upside of 4.51%. Shaw Communications has a consensus target price of $27.75, suggesting a potential upside of 20.13%. Given Shaw Communications’ higher possible upside, analysts clearly believe Shaw Communications is more favorable than ATN International.
This table compares ATN International and Shaw Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shaw Communications beats ATN International on 12 of the 16 factors compared between the two stocks.
ATN International Company Profile
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.
Shaw Communications Company Profile
Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.
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