Head-To-Head Review: Comcast (CMCSA) and Rogers Communications (RCI)

Comcast (NASDAQ:CMCSA) and Rogers Communications (NYSE:RCI) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Volatility & Risk

Comcast has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Rogers Communications has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Comcast and Rogers Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast 27.33% 15.79% 5.83%
Rogers Communications 13.34% 29.37% 7.09%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Comcast and Rogers Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast 0 8 20 0 2.71
Rogers Communications 0 4 1 0 2.20

Comcast presently has a consensus target price of $44.71, indicating a potential upside of 17.15%. Rogers Communications has a consensus target price of $62.00, indicating a potential upside of 20.95%. Given Rogers Communications’ higher probable upside, analysts plainly believe Rogers Communications is more favorable than Comcast.

Earnings and Valuation

This table compares Comcast and Rogers Communications’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comcast $84.53 billion 2.10 $22.71 billion $2.06 18.53
Rogers Communications $10.91 billion 2.42 $1.32 billion $2.71 18.92

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

Insider and Institutional Ownership

80.4% of Comcast shares are owned by institutional investors. Comparatively, 46.1% of Rogers Communications shares are owned by institutional investors. 1.3% of Comcast shares are owned by insiders. 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.

Dividends

Comcast pays an annual dividend of $0.76 per share and has a dividend yield of 2.0%. Rogers Communications pays an annual dividend of $1.47 per share and has a dividend yield of 2.9%. Comcast pays out 36.9% of its earnings in the form of a dividend. Rogers Communications pays out 54.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Comcast has increased its dividend for 7 consecutive years.

Summary

Comcast beats Rogers Communications on 10 of the 17 factors compared between the two stocks.

Comcast Company Profile

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The Cable Communications segment offers video, high-speed Internet, and voice, as well as security and automation services to residential and business customers under the XFINITY brand. This segment also provides business services, such as Ethernet network services; and cellular backhaul services to mobile network operators. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international cable networks; and cable television studio production operations, as well as owns various digital properties, which include brand-aligned Websites. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo local broadcast television stations, broadcast television studio production operations, and various digital properties. The Filmed Entertainment segment produces, acquires, markets, and distributes filmed entertainment under the Universal Pictures, Illumination, Focus Features, and DreamWorks Animation names. This segment also develops, produces, and licenses stage plays; and distributes filmed entertainment produced by third parties. The Theme Parks segment operates Universal theme parks in Orlando, Florida, as well as in Hollywood, California; and Osaka, Japan. The company also owns the Philadelphia Flyers, as well as the Wells Fargo Center arena in Philadelphia, Pennsylvania; and operates arena management-related businesses, as well as provides wireless phone services. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

Rogers Communications Company Profile

Rogers Communications Inc. operates as a communications and media company in Canada. The company's Wireless segment offers wireless telecommunications services to consumers and businesses under the Rogers, Fido, and chatr brands; and wireless devices, services, and applications. This segment distributes its products through independent dealer networks, company-owned retail stores, retail chains and convenience stores, e-commerce sites, call centers and outbound telemarketing, and other distribution channels. As of December 31, 2017, it had approximately 10.5 million subscribers. The company's Cable segment provides high-speed broadband Internet access, digital television and online viewing, phone, and home Wi-Fi services to consumers, businesses, and enterprises; and monitoring, security, automation, energy efficiency, and smart control services. This segment also offers network connectivity services through its fiber network and data center assets through its sales team, third-party retailers, and a network of third-party channel distributors to the enterprise, public sector, and carrier wholesale markets. It distributes its products through company-owned retail stores, e-commerce sites, call centers, outbound telemarketing, door-to-door agents, and other retail locations. This segment had approximately 2.2 million high-speed Internet subscribers, 1.7 million television subscribers, and 1.1 million phone subscribers, as well as operated a network that passes 4.3 million homes. Its Media segment offers multi-platform televised and online shopping, digital media services, and publishing services; and operates television networks and radio stations, as well as owns the Toronto Blue Jays, a league baseball team and Rogers Centre event venue. The company also provides credit cards. Rogers Communications Inc. was founded in 1920 and is headquartered in Toronto, Canada.

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