Analyzing Shaw Communications (SJR) & ATN International (ATNI)

Shaw Communications (NYSE: SJR) and ATN International (NASDAQ:ATNI) are both telecommunications services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Earnings & 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 2.81 $644.63 million $0.94 23.17
ATN International $457.00 million 2.17 $12.10 million ($0.61) -101.42

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Shaw Communications and ATN International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 1 4 1 0 2.00
ATN International 0 1 1 0 2.50

Shaw Communications presently has a consensus target price of $27.33, indicating a potential upside of 25.50%. ATN International has a consensus target price of $63.50, indicating a potential upside of 2.63%. Given Shaw Communications’ higher possible upside, research analysts clearly believe Shaw Communications is more favorable than ATN International.

Dividends

Shaw Communications pays an annual dividend of $0.94 per share and has a dividend yield of 4.3%. ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Shaw Communications 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. ATN International pays out -111.5% of its earnings in the form of a dividend. Shaw Communications has increased its dividend for 16 consecutive years. Shaw Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Shaw Communications has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Profitability

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 17.34% 10.19% 3.99%
ATN International -1.93% 3.34% 2.26%

Insider & Institutional Ownership

52.4% of Shaw Communications shares are held by institutional investors. Comparatively, 58.4% of ATN International shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Comparatively, 32.7% of ATN International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Shaw Communications beats ATN International on 12 of the 16 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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