Everi (NYSE: EVRI) and Atento (NYSE:ATTO) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Everi and Atento, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 0 3.00
Atento 0 1 2 0 2.67

Everi currently has a consensus target price of $7.33, indicating a potential downside of 4.76%. Atento has a consensus target price of $14.67, indicating a potential upside of 50.43%. Given Atento’s higher possible upside, analysts plainly believe Atento is more favorable than Everi.

Dividends

Atento pays an annual dividend of $0.34 per share and has a dividend yield of 3.5%. Everi does not pay a dividend. Atento pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

84.1% of Everi shares are owned by institutional investors. Comparatively, 94.7% of Atento shares are owned by institutional investors. 4.5% of Everi shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Everi has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Atento has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Earnings and Valuation

This table compares Everi and Atento’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $859.46 million 0.60 -$249.47 million ($3.69) -2.09
Atento $1.76 billion 0.41 $60,000.00 $0.28 34.82

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

Profitability

This table compares Everi and Atento’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi -1.73% N/A -1.25%
Atento 0.52% 12.63% 3.81%

Summary

Atento beats Everi on 9 of the 15 factors compared between the two stocks.

About Everi

Everi Holdings Inc. is a holding company. The Company operates through subsidiaries, including Everi Games Holding Inc. (Everi Games Holding) and Everi Payments Inc. (Everi Payments or Payments). The Company operates through two segments: Games and Payments. The Company provides video and mechanical reel gaming content and technology solutions, integrated gaming payments solutions, and compliance and efficiency software. Its games segment provides solutions directly to gaming establishments to offer its patrons gaming entertainment related experiences. The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access related services and products, including access to cash at gaming facilities through automatic teller machine (ATM) cash withdrawals, credit card cash access transactions and point of sale debit card transactions.

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.

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