Financial Analysis: Deutsche Telekom (OTCMKTS:DTEGY) & ATN International (NASDAQ:ATNI)

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

Insider and Institutional Ownership

65.5% of ATN International shares are held by institutional investors. 5.6% of ATN International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Deutsche Telekom and ATN International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Telekom	$134.70 billion	1.17	$10.87 billion	$2.07	15.87
ATN International	$727.97 million	0.64	-$14.91 million	$10.28	2.93

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

Analyst Recommendations

This is a breakdown of current recommendations for Deutsche Telekom and ATN International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Telekom	0	2	2	1	2.80
ATN International	0	2	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Telekom	7.18%	11.11%	3.52%
ATN International	22.55%	-9.46%	-3.25%

Risk and Volatility

Deutsche Telekom has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, ATN International has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Deutsche Telekom beats ATN International on 9 of the 14 factors compared between the two stocks.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.

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.