IDT Corporation (NYSE: IDT) and ATN International (NASDAQ:ATNI) are both small-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

IDT Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. IDT Corporation pays out 200.0% 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 pays out 50.0% of its earnings in the form of a dividend. IDT Corporation has increased its dividend for 15 consecutive years. IDT Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
IDT Corporation 0.55% 14.44% 4.56%
ATN International 4.29% 2.74% 1.87%

Valuation and Earnings

This table compares IDT Corporation and ATN International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IDT Corporation $1.50 billion 0.22 $27.32 million $0.38 35.13
ATN International $518.69 million 1.68 $159.87 million $1.36 39.59

ATN International has higher revenue, but lower earnings than IDT Corporation. IDT Corporation is trading at a lower price-to-earnings ratio than ATN International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

IDT Corporation has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, ATN International has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for IDT Corporation and ATN International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDT Corporation 0 0 0 0 N/A
ATN International 0 2 0 0 2.00

ATN International has a consensus price target of $57.00, indicating a potential upside of 5.87%. Given ATN International’s higher possible upside, analysts clearly believe ATN International is more favorable than IDT Corporation.

Institutional and Insider Ownership

52.0% of IDT Corporation shares are owned by institutional investors. Comparatively, 59.2% of ATN International shares are owned by institutional investors. 12.8% of IDT Corporation shares are owned by company insiders. Comparatively, 32.7% of ATN International shares are owned 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 IDT Corporation on 9 of the 15 factors compared between the two stocks.

IDT Corporation Company Profile

IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.

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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