Analyzing ATN International (NASDAQ:ATNI) and T-Mobile US (NASDAQ:TMUS)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T-Mobile US	$81.40 billion	2.52	$11.34 billion	$10.40	17.65
ATN International	$729.08 million	0.48	-$26.43 million	($0.93)	-24.67

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.

Profitability

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

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

Volatility & Risk

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

Dividends

T-Mobile US pays an annual dividend of $4.08 per share and has a dividend yield of 2.2%. ATN International pays an annual dividend of $1.10 per share and has a dividend yield of 4.8%. T-Mobile US pays out 39.2% of its earnings in the form of a dividend. ATN International pays out -118.3% 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T-Mobile US	0	13	16	3	2.69
ATN International	0	2	0	0	2.00

T-Mobile US presently has a consensus target price of $257.76, indicating a potential upside of 40.39%. ATN International has a consensus target price of $22.00, indicating a potential downside of 4.10%. Given T-Mobile US’s stronger consensus rating and higher possible upside, equities research analysts clearly believe T-Mobile US is more favorable than ATN International.

Insider & Institutional Ownership

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

Summary

T-Mobile US beats ATN International on 12 of the 18 factors compared between the two stocks.

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.

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.