Shaw Communications (NYSE: SJR) and Orange (NYSE:ORAN) are both large-cap telecommunications services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
52.4% of Shaw Communications shares are held by institutional investors. Comparatively, 1.2% of Orange shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Shaw Communications pays an annual dividend of $0.94 per share and has a dividend yield of 4.3%. Orange pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Shaw Communications pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings and price targets for Shaw Communications and Orange, as provided by MarketBeat.com.
||Strong Buy Ratings
Shaw Communications presently has a consensus price target of $27.33, indicating a potential upside of 25.50%. Given Shaw Communications’ higher possible upside, research analysts plainly believe Shaw Communications is more favorable than Orange.
Risk & Volatility
Shaw Communications has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Valuation & Earnings
This table compares Shaw Communications and Orange’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Orange has higher revenue and earnings than Shaw Communications.
This table compares Shaw Communications and Orange’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Shaw Communications beats Orange on 9 of the 14 factors compared between the two stocks.
Shaw Communications Company Profile
Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.
Orange Company Profile
Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.
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