Head-To-Head Contrast: ATN International (NASDAQ:ATNI) & T-Mobile US (NASDAQ:TMUS)

ATN International (NASDAQ:ATNI) and T-Mobile US (NASDAQ:TMUS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares ATN International and T-Mobile US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATN International	-1.11%	0.13%	0.05%
T-Mobile US	13.83%	19.76%	5.67%

Dividends

ATN International pays an annual dividend of $1.10 per share and has a dividend yield of 4.8%. T-Mobile US pays an annual dividend of $4.08 per share and has a dividend yield of 2.2%. ATN International pays out -118.3% of its earnings in the form of a dividend. T-Mobile US pays out 39.2% 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. ATN International has increased its dividend for 3 consecutive years. ATN International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

ATN International has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ATN International and T-Mobile US, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATN International	0	2	0	0	2.00
T-Mobile US	0	13	16	2	2.65

ATN International currently has a consensus price target of $22.00, suggesting a potential downside of 3.42%. T-Mobile US has a consensus price target of $257.76, suggesting a potential upside of 38.56%. Given T-Mobile US’s stronger consensus rating and higher probable upside, analysts clearly believe T-Mobile US is more favorable than ATN International.

Valuation and Earnings

This table compares ATN International and T-Mobile US”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATN International	$729.08 million	0.48	-$26.43 million	($0.93)	-24.49
T-Mobile US	$81.40 billion	2.56	$11.34 billion	$10.40	17.89

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

Insider and Institutional Ownership

65.5% of ATN International shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 5.4% of ATN International shares are owned by company insiders. Comparatively, 0.4% of T-Mobile US shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

T-Mobile US beats ATN International on 12 of the 18 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 T-Mobile US

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.