ATN International (NASDAQ: ATNI) and ARC Group Worldwide (NASDAQ:ARCW) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitabiliy and risk.
Volatility and Risk
ATN International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, ARC Group Worldwide has a beta of 3.42, indicating that its share price is 242% more volatile than the S&P 500.
This is a summary of current ratings and target prices for ATN International and ARC Group Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARC Group Worldwide||0||1||1||0||2.50|
ATN International currently has a consensus price target of $57.00, indicating a potential downside of 5.05%. ARC Group Worldwide has a consensus price target of $5.75, indicating a potential upside of 134.69%. Given ARC Group Worldwide’s higher probable upside, analysts clearly believe ARC Group Worldwide is more favorable than ATN International.
ATN International pays an annual dividend of $1.36 per share and has a dividend yield of 2.3%. ARC Group Worldwide does not pay a dividend. ATN International pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARC Group Worldwide has raised its dividend for 15 consecutive years.
Insider & Institutional Ownership
58.8% of ATN International shares are held by institutional investors. Comparatively, 15.8% of ARC Group Worldwide shares are held by institutional investors. 32.7% of ATN International shares are held by company insiders. Comparatively, 3.2% of ARC Group Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares ATN International and ARC Group Worldwide’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ATN International||$518.69 million||1.87||$159.87 million||$1.36||44.14|
|ARC Group Worldwide||$111.99 million||0.40||$9.57 million||($0.04)||-61.25|
ATN International has higher revenue and earnings than ARC Group Worldwide. ARC Group Worldwide is trading at a lower price-to-earnings ratio than ATN International, indicating that it is currently the more affordable of the two stocks.
This table compares ATN International and ARC Group Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARC Group Worldwide||-0.70%||-7.31%||-2.91%|
ATN International beats ARC Group Worldwide on 10 of the 14 factors compared between the two stocks.
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.
About ARC Group Worldwide
ARC Group Worldwide, Inc. is a manufacturing company. The Company has three segments: Precision Components Group, 3DMT Group, and Flanges and Fittings Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling. The Flange and Fittings Group consists of General Flange and Forge. The Wireless Group focuses on wireless broadband technology related to propagation and optimization. The Wireless Group designs and develops hardware, including antennas, radios and related accessories.
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