Critical Review: NCR Atleos (NATL) versus The Competition

NCR Atleos (NYSE:NATL) is one of 343 public companies in the “Financial Services” industry, but how does it weigh in compared to its competitors? We will compare NCR Atleos to related businesses based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Insider and Institutional Ownership

88.7% of NCR Atleos shares are held by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are held by institutional investors. 0.6% of NCR Atleos shares are held by company insiders. Comparatively, 22.1% of shares of all “Financial Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares NCR Atleos and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NCR Atleos	$4.35 billion	$162.00 million	17.90
NCR Atleos Competitors	$6.36 billion	$1.09 billion	9.34

NCR Atleos’ competitors have higher revenue and earnings than NCR Atleos. NCR Atleos is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

NCR Atleos has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, NCR Atleos’ competitors have a beta of 2.27, indicating that their average share price is 127% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for NCR Atleos and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NCR Atleos	0	4	1	0	2.20
NCR Atleos Competitors	1902	6737	11427	414	2.51

NCR Atleos presently has a consensus price target of $50.27, suggesting a potential upside of 8.85%. As a group, “Financial Services” companies have a potential upside of 1.89%. Given NCR Atleos’ higher possible upside, equities research analysts plainly believe NCR Atleos is more favorable than its competitors.

Profitability

This table compares NCR Atleos and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NCR Atleos	4.44%	83.41%	5.87%
NCR Atleos Competitors	-407.63%	-22.00%	-5.71%

Summary

NCR Atleos competitors beat NCR Atleos on 7 of the 13 factors compared.

NCR Atleos Company Profile

NCR Atleos Corporation operates as a financial technology company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). The Self-Service Banking segment offers solutions, including a line of automated teller machine (ATM) and interactive teller machine (ITM) hardware and software, as well as related installation, maintenance, and managed and professional services; and solutions to manage and run the ATM channel end-to-end for financial institutions comprising back office, cash management, software management and ATM deployment, and others. The Network segment provides a network of ATMs and multi-functioning financial services kiosks for financial institutions, fintechs, neobanks, and retailers; Allpoint network for credit unions, banks, digital banks, fintechs, stored-value debit card issuers, and other consumer financial services providers; ReadyCode to convert a digital value to cash or cash to a digital value; ATM branding solutions to financial institutions; ATM management and services to retailers and other businesses; and engages in the buying and selling of Bitcoins. The T&T segment offers managed network and infrastructure services to enterprise clients across various industries through communications service providers and technology manufacturers; and professional, field, and remote services for modern network technologies, including software-defined wide area networking, network functions virtualization, wireless local area networks, optical networking, and edge networks. NCR Atleos Corporation is headquartered in Atlanta, Georgia.