Critical Comparison: PLDT (PHI) & ATN International (ATNI)

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

Analyst Ratings

This is a summary of current recommendations and price targets for PLDT and ATN International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PLDT 1 3 3 0 2.29
ATN International 0 1 1 0 2.50

ATN International has a consensus target price of $63.50, suggesting a potential upside of 15.62%. Given ATN International’s stronger consensus rating and higher possible upside, analysts plainly believe ATN International is more favorable than PLDT.

Dividends

PLDT pays an annual dividend of $1.23 per share and has a dividend yield of 4.1%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. PLDT pays out 50.6% of its earnings in the form of a dividend. ATN International pays out -111.5% 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.

Risk & Volatility

PLDT has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

8.9% of PLDT shares are owned by institutional investors. Comparatively, 59.0% of ATN International shares are owned by institutional investors. 32.7% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares PLDT 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
PLDT $3.49 billion 1.87 $422.12 million $2.43 12.45
ATN International $457.00 million 1.93 $12.10 million ($0.61) -90.03

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

Profitability

This table compares PLDT and ATN International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PLDT 16.32% 25.56% 6.29%
ATN International -1.93% 3.34% 2.26%

Summary

PLDT beats ATN International on 9 of the 16 factors compared between the two stocks.

PLDT Company Profile

PLDT, Inc., formerly Philippine Long Distance Telephone Company (PLDT), is a telecommunications service provider in the Philippines. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines’ fiber optic backbone and wireless and fixed line networks. The Company’s wireless segment provides cellular, wireless broadband and other services, and digital platforms and mobile financial services. Its Fixed Line segment provides local exchange, international long distance, national long distance, data and other network and miscellaneous services under its fixed line business. It offers postpaid and prepaid fixed line services. Its Other business consists of PLDT Communications and Energy Ventures, Inc. (PCEV), an investment holding company. It also focuses on providing wireless voice communications and wireless data communications.

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.

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