Head to Head Contrast: Swisscom (OTCMKTS:SCMWY) vs. Atento (NYSE:ATTO)

Swisscom (OTCMKTS:SCMWY – Get Free Report) and Atento (NYSE:ATTO – Get Free Report) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

48.0% of Atento shares are held by institutional investors. 1.0% of Swisscom shares are held by insiders. Comparatively, 1.0% of Atento shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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Profitability

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

Dividends

Swisscom pays an annual dividend of $2.01 per share and has a dividend yield of 3.1%. Atento pays an annual dividend of $0.34 per share and has a dividend yield of 71.9%. Swisscom pays out 62.0% of its earnings in the form of a dividend. Atento pays out -3.8% 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. Atento is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Swisscom and Atento, as reported by MarketBeat.

Swisscom currently has a consensus target price of $601.00, suggesting a potential upside of 829.45%. Atento has a consensus target price of $15.00, suggesting a potential upside of 3,091.49%. Given Atento’s stronger consensus rating and higher probable upside, analysts plainly believe Atento is more favorable than Swisscom.

Volatility and Risk

Swisscom has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Atento has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Earnings & Valuation

This table compares Swisscom and Atento’s top-line revenue, earnings per share and valuation.

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

Summary

Swisscom beats Atento on 10 of the 16 factors compared between the two stocks.

About Swisscom

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Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such as telephony, broadband, TV, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises. It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers. Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks. The company was founded in 1852 and is based in Bern, Switzerland.

About Atento

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Atento S.A., together with its subsidiaries, provides customer relationship management business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa. It offers a range of front and back-end services, including sales, customer care, technical support, collections, and back office. The company serves clients primarily in the telecommunications, financial services, consumer goods, retail, public administration, healthcare, travel, transportation, logistics, and technology and media sectors. It provides its services and solutions through digital channels, which include SMS, email, chats, social media and apps, and others, as well as through voice. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Luxembourg.

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