Head-To-Head Contrast: Atea ASA (ATAZF) vs. The Competition

Atea ASA (OTC:ATAZF) is one of 152 public companies in the “Information Technology Services” industry, but how does it compare to its competitors? We will compare Atea ASA to similar companies based on the strength of its analyst recommendations, profitability, valuation, risk, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

45.0% of Atea ASA shares are held by institutional investors. Comparatively, 35.4% of shares of all “Information Technology Services” companies are held by institutional investors. 30.8% of shares of all “Information Technology Services” companies are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Atea ASA and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atea ASA	0	1	1	0	2.50
Atea ASA Competitors	250	859	2047	37	2.59

As a group, “Information Technology Services” companies have a potential upside of 26.86%. Given Atea ASA’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Atea ASA has less favorable growth aspects than its competitors.

Profitability

This table compares Atea ASA and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atea ASA	N/A	N/A	N/A
Atea ASA Competitors	-34.55%	-171.66%	-5.16%

Earnings & Valuation

This table compares Atea ASA and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Atea ASA	N/A	N/A	3.28
Atea ASA Competitors	$2.13 billion	-$9.34 million	-84.65

Atea ASA’s competitors have higher revenue, but lower earnings than Atea ASA. Atea ASA 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.

Dividends

Atea ASA pays an annual dividend of C$3.00 per share and has a dividend yield of 23.1%. Atea ASA pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Information Technology Services” companies pay a dividend yield of 3.8% and pay out 136.8% of their earnings in the form of a dividend. Atea ASA is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Atea ASA beats its competitors on 7 of the 13 factors compared.

About Atea ASA

Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions. The company offers hardware and software solutions for storing and managing information, as well as tools for virtualization, automation, and security for operating the data center environment; and client hardware, software, and services to the requirements of users, applications, security, networks, and computing environments. It also provides hardware and software solutions for running networks, and services to help customers manage their communications; and a range of products to enable collaboration through conferencing, information sharing, and digital productivity solutions. In addition, it offers digital workplace solutions that consist of devices and software through which users conducts work, access data and applications, and interact with each other; information management solutions; and IT asset lifecycle management, professional, and managed services. Atea ASA was founded in 1968 and is headquartered in Oslo, Norway.