Atos (AEXAF) & The Competition Critical Review

Atos (OTCMKTS:AEXAF) is one of 146 publicly-traded companies in the “Information Technology Services” industry, but how does it weigh in compared to its competitors? We will compare Atos to related companies based on the strength of its dividends, earnings, valuation, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

25.9% of Atos shares are owned by institutional investors. Comparatively, 33.3% of shares of all “Information Technology Services” companies are owned by institutional investors. 32.6% of shares of all “Information Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Atos and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Atos	N/A	N/A	3.39
Atos Competitors	$2.06 billion	-$32.68 million	-79.04

Atos’ competitors have higher revenue, but lower earnings than Atos. Atos is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Atos and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atos	0	0	0	0	N/A
Atos Competitors	246	646	1725	21	2.58

As a group, “Information Technology Services” companies have a potential upside of 29.17%. Given Atos’ competitors higher probable upside, analysts plainly believe Atos has less favorable growth aspects than its competitors.

Profitability

This table compares Atos and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atos	N/A	N/A	N/A
Atos Competitors	-37.77%	-190.51%	-6.20%

Dividends

Atos pays an annual dividend of $0.70 per share and has a dividend yield of 9.3%. Atos pays out 31.6% of its earnings in the form of a dividend. As a group, “Information Technology Services” companies pay a dividend yield of 4.4% and pay out 159.3% of their earnings in the form of a dividend. Atos is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Atos beats its competitors on 6 of the 10 factors compared.

About Atos

Atos SE provides digital transformation solutions and services worldwide. It offers advanced computing solutions; analytics, artificial intelligence, and automation solutions; cloud solutions; customer journey analytics and digital customer experience; decarbonization solutions; digital consulting; digital workplace solutions; edge computing and Internet of things solutions; and modern applications and platforms. The company also provides advance detection and response, data protection and governance, digital workplace security, IoT and OT security, trusted digital identities, and cybersecurity solutions; and infrastructure and foundation services. It serves financial services and insurance, healthcare and life sciences, manufacturing, public sector and defense, resources and services, telecom, media, and entertainment industries. The company was incorporated in 1982 and is headquartered in Bezons, France.