Head to Head Review: TalkTalk Telecom Group (TKTCY) versus Atento (ATTO)

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TalkTalk Telecom Group (NYSE: ATTO) and Atento (NYSE:ATTO) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TalkTalk Telecom Group and Atento, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TalkTalk Telecom Group 1 1 1 0 2.00
Atento 0 1 2 0 2.67

Atento has a consensus price target of $11.50, suggesting a potential upside of 40.24%. Given Atento’s stronger consensus rating and higher probable upside, analysts plainly believe Atento is more favorable than TalkTalk Telecom Group.

Volatility & Risk

TalkTalk Telecom Group has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Atento has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares TalkTalk Telecom Group and Atento’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TalkTalk Telecom Group N/A N/A N/A
Atento -1.06% 14.95% 4.16%

Insider and Institutional Ownership

92.4% of Atento shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

TalkTalk Telecom Group pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Atento pays an annual dividend of $0.34 per share and has a dividend yield of 4.1%. Atento pays out 45.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares TalkTalk Telecom Group and Atento’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TalkTalk Telecom Group $2.33 billion 1.02 $75.82 million N/A N/A
Atento $1.92 billion 0.32 -$16.79 million $0.75 10.93

TalkTalk Telecom Group has higher revenue and earnings than Atento.

Summary

Atento beats TalkTalk Telecom Group on 7 of the 13 factors compared between the two stocks.

About TalkTalk Telecom Group

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

About Atento

Atento S.A., together with its subsidiaries, provides customer relationship management and 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, collections, back office, applications-processing, credit-management, and technical support services. The company serves clients primarily in the telecommunications and financial services sectors; and in multi-sectors, including consumer goods, retail, public administration, healthcare, travel, and transportation and logistics, as well as technology and media. 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 and in-person. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Findel, Luxembourg.

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