Financial Analysis: Shaw Communications (SJRWF) versus Its Rivals

Earnings and Valuation

This table compares Shaw Communications and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shaw Communications	N/A	N/A	16.49
Shaw Communications Competitors	$24.18 billion	$976.35 million	-191.23

Shaw Communications’ competitors have higher revenue and earnings than Shaw Communications. Shaw Communications 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.

Institutional and Insider Ownership

32.7% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 18.7% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Shaw Communications pays an annual dividend of $1.08 per share and has a dividend yield of 3.6%. Shaw Communications pays out 59.6% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.3% and pay out 32.3% of their earnings in the form of a dividend. Shaw Communications lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shaw Communications	N/A	N/A	N/A
Shaw Communications Competitors	-12.22%	-229.18%	-3.14%

Summary

Shaw Communications competitors beat Shaw Communications on 5 of the 9 factors compared.

Shaw Communications Company Profile

Shaw Communications Inc. operates as a connectivity company in North America. The company's Wireline segment provides cable telecommunications services, including video, Internet, WiFi, phone, satellite video, and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses, and public-sector entities. Its Wireless segment provides wireless services for voice and data communications serving customers in Ontario, British Columbia, and Alberta through Freedom Mobile; and in British Columbia and Alberta through Shaw Mobile. The company was formerly known as Shaw Cablesystems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was incorporated in 1966 and is headquartered in Calgary, Canada.