Critical Analysis: Rogers Communication (RCI) and Its Competitors
Rogers Communication (NYSE: RCI) is one of 37 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its peers? We will compare Rogers Communication to related companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
47.4% of Rogers Communication shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company 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.
Rogers Communication pays an annual dividend of $1.54 per share and has a dividend yield of 2.9%. Rogers Communication pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 2.9% and pay out 59.2% of their earnings in the form of a dividend. Rogers Communication lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings & Valuation
This table compares Rogers Communication and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Rogers Communication||$11.46 billion||$4.23 billion||36.32|
|Rogers Communication Competitors||$27.19 billion||$8.09 billion||7.43|
Rogers Communication’s peers have higher revenue and earnings than Rogers Communication. Rogers Communication is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Rogers Communication has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Rogers Communication’s peers have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.
This is a summary of current recommendations for Rogers Communication and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rogers Communication Competitors||515||1583||1755||57||2.35|
Rogers Communication presently has a consensus target price of $62.67, indicating a potential upside of 16.59%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 20.35%. Given Rogers Communication’s peers higher possible upside, analysts clearly believe Rogers Communication has less favorable growth aspects than its peers.
This table compares Rogers Communication and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rogers Communication Competitors||-958.78%||4.41%||-4.90%|
Rogers Communication peers beat Rogers Communication on 8 of the 15 factors compared.
Rogers Communication Company Profile
Rogers Communications Inc. is a communications and media company. The Company provides wireless communications services, and cable television, Internet, information technology (IT) and telephony services to consumers and businesses. Its segments include Wireless, Cable, Business Solutions and Media. The Wireless segment is engaged in wireless telecommunications operations for Canadian consumers and businesses. The Cable segment include cable telecommunications operations, including Internet, television and telephony (phone) services for Canadian consumers and businesses. The Business Solutions segment is engaged in network connectivity through its fiber network and data center assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector and carrier wholesale markets. The Media segment has a portfolio of media properties, including sports media and entertainment, multi-platform shopping, digital media and publishing.
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