BCE (NYSE:BCE) and Atento (NYSE:ATTO) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Profitability
This table compares BCE and Atento’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BCE | 12.61% | 18.75% | 5.28% |
| Atento | -2.14% | 4.13% | 0.89% |
Risk & Volatility
BCE has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Atento has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for BCE and Atento, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BCE | 1 | 4 | 5 | 0 | 2.40 |
| Atento | 0 | 1 | 2 | 0 | 2.67 |
BCE currently has a consensus price target of $56.68, indicating a potential upside of 22.83%. Atento has a consensus price target of $5.50, indicating a potential upside of 98.56%. Given Atento’s stronger consensus rating and higher probable upside, analysts plainly believe Atento is more favorable than BCE.
Earnings and Valuation
This table compares BCE and Atento’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BCE | $18.11 billion | 2.30 | $2.26 billion | $2.71 | 17.03 |
| Atento | $1.82 billion | 0.11 | $18.54 million | $0.77 | 3.60 |
BCE has higher revenue and earnings than Atento. Atento is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
45.2% of BCE shares are owned by institutional investors. Comparatively, 73.5% of Atento shares are owned by institutional investors. 0.2% of BCE shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
BCE beats Atento on 10 of the 14 factors compared between the two stocks.
About BCE
BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates in three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services, including 40 live and on-demand channels on smartphones and tablets; roaming services; push-to-talk, field service management, worker safety, and mobility management solutions; and asset management, smart buildings, smart cities, fleet management, and other Internet of Things services. It also provides various 4G LTE and LTE-A smartphones and tablets, mobile Internet hubs and sticks, and mobile Wi-Fi devices, as well as smartwatches, Bell connected cars, trackers, smart homes, lifestyle products, and virtual reality products. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, and other communications services and products. It also provides home security, monitoring, and automation services; and satellite TV and connectivity services. In addition, this segment offers local exchange carrier and telecommunications services; sells wireline-related products; and buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services, sports and other event production, and broadcasting services. It owns and operates approximately 30 conventional TV stations; 33 specialty and Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and 200 Websites and approximately 30 apps. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.
About Atento
Atento S.A., together with its subsidiaries, provides customer relationship management and 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, collections, back office, applications-processing, credit-management, and technical support services. The company serves clients primarily in the telecommunications and financial services sectors; and in multi-sectors, including consumer goods, retail, public administration, healthcare, travel, and transportation and logistics, as well as technology and media. 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 and in-person. The company was formerly known as Atento Floatco S.A. Atento S.A. was founded in 1999 and is based in Findel, Luxembourg.
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