Analyzing Shaw Communications (SJR) & ATN International (ATNI)

Shaw Communications (NYSE: SJR) and ATN International (NASDAQ:ATNI) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Dividends

Shaw Communications pays an annual dividend of $0.92 per share and has a dividend yield of 4.3%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Shaw Communications pays out 66.7% of its earnings in the form of a dividend. ATN International pays out -111.5% 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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shaw Communications $3.70 billion 2.78 $644.63 million $1.38 15.65
ATN International $457.00 million 2.07 $12.10 million ($0.61) -96.83

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.

Profitability

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

Net Margins Return on Equity Return on Assets
Shaw Communications 17.34% 9.89% 3.97%
ATN International -1.93% 3.34% 2.26%

Risk & Volatility

Shaw Communications has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Shaw Communications and ATN International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 1 4 1 0 2.00
ATN International 0 1 1 0 2.50

Shaw Communications presently has a consensus price target of $27.33, indicating a potential upside of 26.60%. ATN International has a consensus price target of $63.50, indicating a potential upside of 7.50%. Given Shaw Communications’ higher probable upside, research analysts clearly believe Shaw Communications is more favorable than ATN International.

Insider & Institutional Ownership

52.5% of Shaw Communications shares are held by institutional investors. Comparatively, 58.3% of ATN International shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Comparatively, 32.7% of ATN International 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.

Summary

Shaw Communications beats ATN International on 11 of the 15 factors compared between the two stocks.

About Shaw Communications

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.

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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