Head-To-Head Review: Telenor ASA (OTCMKTS:TELNY) vs. ATN International (NASDAQ:ATNI)

Telenor ASA (OTCMKTS:TELNY) and ATN International (NASDAQ:ATNI) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Dividends

Telenor ASA pays an annual dividend of $0.69 per share and has a dividend yield of 4.8%. ATN International pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. Telenor ASA pays out 45.4% of its earnings in the form of a dividend. ATN International pays out 11.3% 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 raised its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	26.85%	16.94%	5.86%
ATN International	22.55%	-9.46%	-3.25%

Institutional and Insider Ownership

65.5% of ATN International shares are held by institutional investors. 5.6% of ATN International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Telenor ASA has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Earnings & Valuation

This table compares Telenor ASA and ATN International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telenor ASA	$7.38 billion	2.65	$678.08 million	$1.52	9.41
ATN International	$727.97 million	0.55	-$14.91 million	$10.28	2.52

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Telenor ASA and ATN International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	2	2	0	3	2.57
ATN International	0	2	0	0	2.00

Summary

Telenor ASA beats ATN International on 10 of the 16 factors compared between the two stocks.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

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.