Analyzing Atento (ATTO) and Vantiv (VNTV)

Vantiv (NYSE: VNTV) and Atento (NYSE:ATTO) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Risk and Volatility

Vantiv has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Atento has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Dividends

Atento pays an annual dividend of $0.34 per share and has a dividend yield of 3.3%. Vantiv does not pay a dividend. Atento pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vantiv and Atento, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vantiv 0 7 22 0 2.76
Atento 0 1 2 0 2.67

Vantiv currently has a consensus price target of $78.50, indicating a potential upside of 6.73%. Atento has a consensus price target of $14.67, indicating a potential upside of 44.50%. Given Atento’s higher probable upside, analysts plainly believe Atento is more favorable than Vantiv.

Earnings & Valuation

This table compares Vantiv and Atento’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vantiv $3.58 billion 3.65 $213.20 million $1.45 50.72
Atento $1.76 billion 0.43 $60,000.00 $0.28 36.25

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

Profitability

This table compares Vantiv and Atento’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vantiv 6.07% 41.19% 7.92%
Atento 0.52% 12.63% 3.81%

Institutional & Insider Ownership

94.7% of Atento shares are owned by institutional investors. 1.3% of Vantiv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Vantiv beats Atento on 13 of the 16 factors compared between the two stocks.

About Vantiv

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

About Atento

Atento S.A. is a provider of customer-relationship management and business-process outsourcing (CRM BPO) services and solutions in Latin America. The Company offers a portfolio of CRM BPO services, including customer care, sales, collections, back office and technical support. The Company operates through three segments: EMEA, Americas and Brazil. Its services and solutions are delivered across multiple channels including digital (short message service (SMS), e-mail, chats, social media and applications, among others) and voice, and are enabled by process design, technology and intelligence functions. The Company also has client relationships across a range of industries working in sectors, such as telecommunications, banking and financial services and multi-sector, which comprise the consumer goods, services, public administration, pay television, healthcare, transportation, technology and media industries.

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