Neustar (NYSE: NSR) and ATN International (NASDAQ:ATNI) are both small-cap telecommunications services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Neustar and ATN International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neustar 0 2 0 0 2.00
ATN International 0 2 0 0 2.00

Neustar presently has a consensus price target of $29.00, suggesting a potential downside of 13.43%. ATN International has a consensus price target of $57.00, suggesting a potential upside of 8.63%. Given ATN International’s higher possible upside, analysts clearly believe ATN International is more favorable than Neustar.

Profitability

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

Net Margins Return on Equity Return on Assets
Neustar 15.50% 19.28% 8.80%
ATN International -1.93% 3.34% 2.26%

Dividends

ATN International pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Neustar does not pay a dividend. ATN International pays out -111.5% of its earnings in the form of a dividend. ATN International has raised its dividend for 15 consecutive years.

Institutional & Insider Ownership

88.8% of Neustar shares are owned by institutional investors. Comparatively, 59.3% of ATN International shares are owned by institutional investors. 2.9% of Neustar shares are owned by company insiders. Comparatively, 32.7% of ATN International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Neustar and ATN International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Neustar N/A N/A N/A $3.27 10.24
ATN International $457.00 million 1.84 $12.10 million ($0.61) -86.01

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

Summary

ATN International beats Neustar on 6 of the 11 factors compared between the two stocks.

Neustar Company Profile

NeuStar, Inc. is a global information services provider. The Company’s cloud-based platforms and differentiated data sets offer informative, real-time analytics, which enable clients to make actionable, data-driven decisions. It provides chief marketing officers a suite of services to plan their media spends, identify and locate desired customers, invest in marketing campaigns, deliver relevant offers and measure the performance of these activities. Security professionals use the Company’s solutions to maximize Web performance and protect against malicious attacks. It enables the exchange of essential operating information across multiple carriers to provision and manage services, assisting clients with order processing and routing of customer inquiries. The Company’s services include marketing services, security services, data services and number portability administration center (NPAC) services.

ATN International Company Profile

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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