Atos (OTCMKTS:AEXAF) versus Amadeus IT Group (OTCMKTS:AMADY) Critical Analysis

Atos (OTCMKTS:AEXAF) and Amadeus IT Group (OTCMKTS:AMADY) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Atos and Amadeus IT Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atos	0	0	0	0	N/A
Amadeus IT Group	0	0	0	0	N/A

Earnings and Valuation

This table compares Atos and Amadeus IT Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atos	N/A	N/A	N/A	$2.21	N/A
Amadeus IT Group	$5.89 billion	5.58	$1.14 billion	$2.85	25.58

Amadeus IT Group has higher revenue and earnings than Atos. Atos is trading at a lower price-to-earnings ratio than Amadeus IT Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Atos pays an annual dividend of $0.70 per share. Amadeus IT Group pays an annual dividend of $1.30 per share and has a dividend yield of 1.8%. Atos pays out 31.6% of its earnings in the form of a dividend. Amadeus IT Group pays out 45.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Atos and Amadeus IT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atos	N/A	N/A	N/A
Amadeus IT Group	20.02%	24.69%	10.28%

Institutional and Insider Ownership

25.9% of Atos shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Amadeus IT Group beats Atos on 7 of the 9 factors compared between the two stocks.

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, and telecommunication and media industries. The company was incorporated in 1982 and is headquartered in Bezons, France.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.