Contrasting Atento (NYSE:ATTO) and LICT (OTCMKTS:LICT)

Atento (NYSE:ATTOGet Rating) and LICT (OTCMKTS:LICTGet Rating) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Atento and LICT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atento 0 1 1 0 2.50
LICT 0 0 0 0 N/A

Atento presently has a consensus target price of $31.00, suggesting a potential upside of 223.59%. Given Atento’s higher probable upside, research analysts plainly believe Atento is more favorable than LICT.

Insider and Institutional Ownership

2.8% of LICT shares are held by institutional investors. 26.1% of LICT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atento $1.45 billion 0.10 -$92.95 million ($9.98) -0.96
LICT $129.14 million 3.17 $24.92 million $1,362.00 16.70

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

Volatility & Risk

Atento has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, LICT has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Atento -9.80% -132.40% -3.34%
LICT 19.15% N/A N/A

Summary

LICT beats Atento on 9 of the 13 factors compared between the two stocks.

About Atento (Get Rating)

Atento S.A., together with its subsidiaries, provides customer relationship management business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa. It offers a range of front and back-end services, including sales, customer care, technical support, collections, and back office. The company serves clients primarily in the telecommunications, financial services, consumer goods, retail, public administration, healthcare, travel, transportation, logistics, and technology and media sectors. It provides its services and solutions through digital channels, which include SMS, email, chats, social media and apps, and others, as well as through voice. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Luxembourg.

About LICT (Get Rating)

LICT Corporation, together with its subsidiaries, provides broadband, voice, and video services to residential, commercial, and governmental customers. It offers high speed broadband services, including internet access through copper-based digital subscriber lines, fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and internet protocol television services; voice over internet protocol services; wireless voice communications services; and other telecommunications related services. The company operates in California, Iowa, Kansas, Michigan, New Mexico, Utah, Wisconsin, Illinois, Nevada, and Oregon. As of December 31, 2020, it had a total of 31,461 voice lines, including incumbent local exchange carrier and competitive local exchange carrier lines; 5,211 miles of fiber optic cable; 11,490 miles of copper cable; and 762 miles of coaxial cable. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.

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