Contrasting Rogers Communication (RCI) and Its Competitors

Rogers Communication (NYSE: RCI) is one of 36 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Rogers Communication to related businesses based on the strength of its risk, valuation, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk & Volatility

Rogers Communication has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Rogers Communication’s peers have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Dividends

Rogers Communication pays an annual dividend of $1.54 per share and has a dividend yield of 2.9%. Rogers Communication pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 2.9% and pay out 59.3% of their earnings in the form of a dividend. Rogers Communication lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for Rogers Communication and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communication 0 5 3 0 2.38
Rogers Communication Competitors 511 1570 1750 56 2.35

Rogers Communication currently has a consensus target price of $57.00, indicating a potential upside of 7.41%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 18.24%. Given Rogers Communication’s peers higher possible upside, analysts plainly believe Rogers Communication has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Rogers Communication and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rogers Communication $11.46 billion $4.23 billion 35.86
Rogers Communication Competitors $28.35 billion $8.31 billion 7.82

Rogers Communication’s peers have higher revenue and earnings than Rogers Communication. Rogers Communication is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

47.4% of Rogers Communication shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rogers Communication and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rogers Communication 7.42% 28.90% 5.64%
Rogers Communication Competitors -994.58% 4.47% -5.15%

Summary

Rogers Communication peers beat Rogers Communication on 8 of the 15 factors compared.

About Rogers Communication

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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