Atento (NYSE: ATTO) and Willdan Group (NASDAQ:WLDN) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
This table compares Atento and Willdan Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
96.0% of Atento shares are owned by institutional investors. Comparatively, 67.3% of Willdan Group shares are owned by institutional investors. 13.3% of Willdan Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Atento and Willdan Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Willdan Group||$208.94 million||0.83||$8.29 million||$1.16||17.10|
Willdan Group has lower revenue, but higher earnings than Atento. Willdan Group is trading at a lower price-to-earnings ratio than Atento, indicating that it is currently the more affordable of the two stocks.
Atento pays an annual dividend of $0.34 per share and has a dividend yield of 3.7%. Willdan Group does not pay a dividend. Atento pays out 242.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and recommmendations for Atento and Willdan Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Atento currently has a consensus target price of $14.67, suggesting a potential upside of 57.71%. Willdan Group has a consensus target price of $37.67, suggesting a potential upside of 89.85%. Given Willdan Group’s stronger consensus rating and higher possible upside, analysts clearly believe Willdan Group is more favorable than Atento.
Volatility & Risk
Atento has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500. Comparatively, Willdan Group has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Willdan Group beats Atento on 13 of the 16 factors compared between the two stocks.
Atento Company Profile
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.
Willdan Group Company Profile
Willdan Group, Inc. is a holding company. The Company provides professional technical and consulting services to utilities, private industry and public agencies at all levels of government, primarily in California and New York. It operates through four segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Energy Efficiency Services segment provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a range of engineering and planning services to its public and private sector clients. The Public Finance Services segment provides support for the various financing techniques employed by public agencies to finance their operations and infrastructure. The Homeland Security Services segment provides national preparedness, homeland security consulting, public safety and emergency response services.
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