Shaw Communications (NYSE: SJR) and ATN International (NASDAQ:ATNI) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares Shaw Communications and ATN International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shaw Communications||$3.70 billion||2.80||$644.63 million||$1.38||15.75|
|ATN International||$457.00 million||2.10||$12.10 million||($0.61)||-98.06|
Insider & Institutional Ownership
52.5% of Shaw Communications shares are owned by institutional investors. Comparatively, 58.4% of ATN International shares are owned by institutional investors. 1.0% of Shaw Communications shares are owned by company insiders. Comparatively, 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.
Shaw Communications pays an annual dividend of $0.92 per share and has a dividend yield of 4.2%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Shaw Communications pays out 66.7% 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.
This is a summary of current ratings and recommmendations for Shaw Communications and ATN International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shaw Communications currently has a consensus price target of $27.33, indicating a potential upside of 25.73%. ATN International has a consensus price target of $63.50, indicating a potential upside of 6.15%. Given Shaw Communications’ higher possible upside, equities research analysts plainly believe Shaw Communications is more favorable than ATN International.
Risk & Volatility
Shaw Communications has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
This table compares Shaw Communications and ATN International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shaw Communications beats ATN International on 11 of the 15 factors compared between the two stocks.
About Shaw Communications
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.
About ATN International
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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