Reviewing Deutsche Telekom (OTCMKTS:DTEGY) and ATN International (NASDAQ:ATNI)

ATN International (NASDAQ:ATNI) and Deutsche Telekom (OTCMKTS:DTEGY) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares ATN International and Deutsche Telekom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATN International	$734.10 million	0.63	-$14.91 million	$10.28	2.91
Deutsche Telekom	$134.70 billion	1.15	$10.87 billion	$2.07	15.65

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ATN International	22.55%	-9.46%	-3.25%
Deutsche Telekom	7.18%	11.11%	3.52%

Dividends

ATN International pays an annual dividend of $1.16 per share and has a dividend yield of 3.9%. Deutsche Telekom pays an annual dividend of $1.88 per share and has a dividend yield of 5.8%. ATN International pays out 11.3% of its earnings in the form of a dividend. Deutsche Telekom pays out 90.8% 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 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ATN International and Deutsche Telekom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATN International	0	2	0	0	2.00
Deutsche Telekom	0	3	2	0	2.40

Volatility and Risk

ATN International has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Insider and Institutional Ownership

65.5% of ATN International shares are owned by institutional investors. 5.6% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Deutsche Telekom beats ATN International on 9 of the 16 factors compared between the two stocks.

About ATN International

ATN International, Inc., through its subsidiaries, engages in the provision of digital infrastructure and communications services to residential, business, and government customers in the United States and internationally. The company operates through International Telecom and US Telecom segments. The company offers mobile, data, voice, broadband, and fixed services; handsets and accessories; and wholesale roaming, long distance voice services, and site maintenance services. It also leases critical network infrastructure, including towers and transport facilities; and provides managed information technology services, such as network, application, infrastructure, and hosting services. 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.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.