Head-To-Head Contrast: Mobile TeleSystems OJSC (MBT) vs. Rogers Communications (NYSE:RCI)

Mobile TeleSystems OJSC (NYSE: MBT) and Rogers Communications (NYSE:RCI) are both large-cap telecommunications services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Institutional & Insider Ownership

32.1% of Mobile TeleSystems OJSC shares are owned by institutional investors. Comparatively, 47.2% of Rogers Communications shares are owned by institutional investors. 1.0% of Mobile TeleSystems OJSC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Mobile TeleSystems OJSC and Rogers Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mobile TeleSystems OJSC 13.61% 43.01% 10.55%
Rogers Communications 13.04% 31.06% 6.60%

Valuation and Earnings

This table compares Mobile TeleSystems OJSC and Rogers Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mobile TeleSystems OJSC $5.80 billion 1.85 $727.11 million $1.04 10.35
Rogers Communications $10.35 billion 2.48 $630.59 million $1.97 25.27

Mobile TeleSystems OJSC has higher earnings, but lower revenue than Rogers Communications. Mobile TeleSystems OJSC is trading at a lower price-to-earnings ratio than Rogers Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Mobile TeleSystems OJSC and Rogers Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mobile TeleSystems OJSC 0 3 2 0 2.40
Rogers Communications 0 3 3 0 2.50

Mobile TeleSystems OJSC presently has a consensus price target of $10.47, suggesting a potential downside of 2.73%. Rogers Communications has a consensus price target of $65.00, suggesting a potential upside of 30.57%. Given Rogers Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Rogers Communications is more favorable than Mobile TeleSystems OJSC.

Risk and Volatility

Mobile TeleSystems OJSC has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Rogers Communications has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Dividends

Mobile TeleSystems OJSC pays an annual dividend of $0.70 per share and has a dividend yield of 6.5%. Rogers Communications pays an annual dividend of $1.54 per share and has a dividend yield of 3.1%. Mobile TeleSystems OJSC pays out 67.3% of its earnings in the form of a dividend. Rogers Communications pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mobile TeleSystems OJSC is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Mobile TeleSystems OJSC

Mobil’nye Telesistemy PAO is a Russia-based provider of telecommunications services. The Company provides mobile and fixed-line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed-line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed-line segment includes fixed-line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed-line operations carried out across multiple regions of Ukraine. The Company also offers software solutions, such as LiteBox, a cloud-based tool for online cash operations.

About Rogers Communications

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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