Telenor (OTCMKTS: TELNY) and ATN International (NASDAQ:ATNI) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Dividends

Telenor pays an annual dividend of $0.83 per share and has a dividend yield of 3.9%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Telenor pays out 65.4% of its earnings in the form of a dividend. ATN International pays out 31.2% 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.

Volatility and Risk

Telenor has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Telenor 10.78% 27.19% 8.27%
ATN International 4.17% 2.91% 1.98%

Valuation and Earnings

This table compares Telenor and ATN International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telenor $15.10 billion 2.10 $1.45 billion $1.27 16.61
ATN International $481.19 million 1.76 $31.48 million $2.18 24.32

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

Institutional and Insider Ownership

0.0% of Telenor shares are owned by institutional investors. Comparatively, 61.3% of ATN International shares are owned by institutional investors. 32.8% of ATN International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Telenor and ATN International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenor 1 0 0 0 1.00
ATN International 1 0 1 0 2.00

ATN International has a consensus price target of $57.50, indicating a potential upside of 8.45%. Given ATN International’s stronger consensus rating and higher possible upside, analysts plainly believe ATN International is more favorable than Telenor.

Telenor Company Profile

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting services include DTH, broadcasting and data communication services through satellite, and terrestrial radio and TV transmission. The company also provides wholesale services that enable the operators to route international voice, messaging, data, and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services, such as international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites, equipment primarily in the satellite business, and properties. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.

ATN International Company Profile

ATN International, Inc., through its subsidiaries, provides wireless and wireline telecommunications services in North America, Bermuda, and the Caribbean. It operates through U.S. Telecom, International Telecom, and Renewable Energy segments. The company offers wholesale wireless voice and data roaming services; wireline local telephone and data, video, and long-distance voice services; and facilities-based integrated voice and data communications, and wholesale transport services to enterprise and residential customers. It also provides wireless devices and accessories, including smartphones, feature phones, wireless hot spots, and various wireless solutions for small businesses; and sells original equipment manufacturer and after-market accessories, such as phone protection, battery charging solutions, and Bluetooth hands-free kits. In addition, the company develops, owns, and operates commercial distributed generation solar power systems; and owns and operates terrestrial and submarine fiber optic transport systems. It offers its services through direct sales force, retail stores, and independent dealers. The company was formerly known as Atlantic Tele-Network, Inc. and changed its name to ATN International, Inc. in June 2016. ATN International, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.

Receive News & Ratings for Telenor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telenor and related companies with MarketBeat.com's FREE daily email newsletter.