Critical Review: Atlantic International (NASDAQ:ATLN) vs. TTEC (NASDAQ:TTEC)

Atlantic International (NASDAQ:ATLN) and TTEC (NASDAQ:TTEC) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Earnings and Valuation

This table compares Atlantic International and TTEC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic International	$442.61 million	0.42	-$5.63 million	($6.63)	-0.55
TTEC	$2.21 billion	0.08	$8.43 million	($6.74)	-0.57

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

Risk and Volatility

Atlantic International has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, TTEC has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

38.0% of TTEC shares are owned by institutional investors. 22.3% of Atlantic International shares are owned by insiders. Comparatively, 59.3% of TTEC shares are owned 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.

Profitability

This table compares Atlantic International and TTEC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic International	N/A	-298.20%	-42.32%
TTEC	-14.69%	5.00%	1.15%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Atlantic International and TTEC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic International	0	0	0	0	0.00
TTEC	0	2	2	0	2.50

TTEC has a consensus target price of $10.83, suggesting a potential upside of 182.85%. Given TTEC’s stronger consensus rating and higher possible upside, analysts clearly believe TTEC is more favorable than Atlantic International.

Summary

TTEC beats Atlantic International on 10 of the 14 factors compared between the two stocks.

About Atlantic International

Atlantic International Corp. engages in the design, development, and manufacture of genetic analysis technologies. Its services include RNA sequencing and DNA sequencing. The company was founded by William C. St. Laurent and Daniel R. Jones in 2013 and is headquartered in Billercia, MA.

About TTEC

TTEC Holdings, Inc. operates as a customer experience (CX) company that designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels. It operates through two segments, TTEC Digital and TTEC Engage. The TTEC Digital segment provides CX technologies for contact center as a service, customer relationship management, and artificial intelligence (AI) and analytics; creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies; creates proprietary IP to support industry specific and custom client needs; and offers CX consulting services. The TTEC Engage segment provides digitally enabled CX operational and managed services; delivers data-driven omnichannel customer care, customer acquisition, growth and retention services, tech support, trust and safety, and back-office solutions; and offers solutions for AI operations, including data annotation and labeling. It serves clients in the healthcare, automotive, government, financial services, communication, technology, travel, logistics, media and entertainment, e-tail/retail, and transportation industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom. The company was formerly known as TeleTech Holdings, Inc. and changed its name to TTEC Holdings, Inc. in January 2018. TTEC Holdings, Inc. was founded in 1982 and is headquartered in Greenwood Village, Colorado.