Critical Survey: Shaw Communications (SJR) and ATN International (ATNI)

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

Profitability

This table compares ATN International and Shaw Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATN International -1.93% 3.34% 2.26%
Shaw Communications 17.34% 9.89% 3.97%

Volatility and Risk

ATN International has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Shaw Communications has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ATN International and Shaw Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATN International 0 1 1 0 2.50
Shaw Communications 1 4 1 0 2.00

ATN International presently has a consensus target price of $63.50, suggesting a potential upside of 9.99%. Shaw Communications has a consensus target price of $27.33, suggesting a potential upside of 29.54%. Given Shaw Communications’ higher possible upside, analysts plainly believe Shaw Communications is more favorable than ATN International.

Dividends

ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Shaw Communications pays an annual dividend of $0.92 per share and has a dividend yield of 4.4%. ATN International pays out -111.5% of its earnings in the form of a dividend. Shaw Communications pays out 66.7% 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.

Institutional & Insider Ownership

58.4% of ATN International shares are owned by institutional investors. Comparatively, 52.5% of Shaw Communications shares are owned by institutional investors. 32.7% of ATN International shares are owned by company insiders. Comparatively, 1.0% of Shaw Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ATN International and Shaw Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATN International $457.00 million 2.02 $12.10 million ($0.61) -94.64
Shaw Communications $3.70 billion 2.72 $644.63 million $1.38 15.29

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

Summary

Shaw Communications beats ATN International on 11 of the 15 factors compared between the two stocks.

ATN International Company Profile

ATN International, Inc. (ATN), formerly Atlantic Tele-Network, Inc., is a holding company. The Company’s segments include U.S. Telecom, International Telecom and Renewable Energy. In the United States, it provides wholesale wireless voice and data roaming services in rural markets to national, regional, local and selected international wireless carriers. Its wholesale networks are located principally in the western United States. It provides wireless voice and data service to retail and business customers in Bermuda under the One name, in Guyana under the GTT name and in the United States Virgin Islands under the Innovative and Choice brand names. The Company offers voice services that include local exchange, regional and long distance calling and voice messaging services in Bermuda, Guyana, the United States Virgin Islands, and in other smaller markets in the Caribbean and the United States. It offers services, which include Wireless, Wireline and Renewable Energy.

Shaw Communications Company Profile

Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.

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