Financial Survey: Rogers Communication (NYSE:RCI) versus BlackBerry (RIMM)

BlackBerry (NASDAQ: RIMM) and Rogers Communication (NYSE:RCI) are both telecommunications services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Dividends

Rogers Communication pays an annual dividend of $1.54 per share and has a dividend yield of 2.9%. BlackBerry does not pay a dividend. Rogers Communication pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares BlackBerry and Rogers Communication’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackBerry 7.98% 2.77% 1.90%
Rogers Communication 9.20% 30.40% 6.09%

Analyst Ratings

This is a summary of current ratings and price targets for BlackBerry and Rogers Communication, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 0 0 0 0 N/A
Rogers Communication 0 4 2 0 2.33

Rogers Communication has a consensus price target of $61.50, indicating a potential upside of 17.14%. Given Rogers Communication’s higher probable upside, analysts plainly believe Rogers Communication is more favorable than BlackBerry.

Insider & Institutional Ownership

47.5% of Rogers Communication shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares BlackBerry and Rogers Communication’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackBerry N/A N/A N/A N/A N/A
Rogers Communication $11.46 billion 2.36 $4.23 billion $1.89 27.78

Rogers Communication has higher revenue and earnings than BlackBerry.

Summary

Rogers Communication beats BlackBerry on 8 of the 9 factors compared between the two stocks.

BlackBerry Company Profile

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

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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