Telecom Italia S.P.A. (NYSE: TI) and ATN International (NASDAQ:ATNI) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

Telecom Italia S.P.A. has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, ATN International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Telecom Italia S.P.A. and ATN International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Telecom Italia S.P.A. $23.17 billion 0.88 $9.99 billion N/A N/A
ATN International $518.69 million 1.88 $159.87 million $1.36 44.18

Telecom Italia S.P.A. has higher revenue and earnings than ATN International.

Profitability

This table compares Telecom Italia S.P.A. and ATN International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Italia S.P.A. N/A N/A N/A
ATN International 4.29% 2.74% 1.87%

Dividends

ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.3%. Telecom Italia S.P.A. does not pay 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 raised its dividend for 15 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Telecom Italia S.P.A. and ATN International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia S.P.A. 0 3 2 0 2.40
ATN International 0 1 1 0 2.50

ATN International has a consensus target price of $57.00, indicating a potential downside of 5.14%. Given ATN International’s stronger consensus rating and higher possible upside, analysts clearly believe ATN International is more favorable than Telecom Italia S.P.A..

Institutional and Insider Ownership

0.8% of Telecom Italia S.P.A. shares are held by institutional investors. Comparatively, 59.3% of ATN International shares are held by institutional investors. 32.7% of ATN International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ATN International beats Telecom Italia S.P.A. on 10 of the 15 factors compared between the two stocks.

Telecom Italia S.P.A. Company Profile

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

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.

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