Critical Review: Rogers Communications (RCI) & DISH Network (DISH)

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

Profitability

This table compares Rogers Communications and DISH Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rogers Communications 13.34% 29.37% 7.09%
DISH Network 19.01% 20.26% 5.13%

Analyst Recommendations

This is a summary of recent ratings for Rogers Communications and DISH Network, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communications 0 4 1 0 2.20
DISH Network 2 6 6 0 2.29

Rogers Communications presently has a consensus target price of $52.84, indicating a potential downside of 2.75%. DISH Network has a consensus target price of $39.62, indicating a potential upside of 38.32%. Given DISH Network’s stronger consensus rating and higher possible upside, analysts plainly believe DISH Network is more favorable than Rogers Communications.

Dividends

Rogers Communications pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. DISH Network does not pay a dividend. Rogers Communications pays out 53.1% of its earnings in the form of a dividend. Rogers Communications has increased its dividend for 2 consecutive years.

Volatility and Risk

Rogers Communications has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, DISH Network has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers Communications $10.91 billion 2.56 $1.32 billion $2.71 20.05
DISH Network $14.39 billion 0.93 $2.10 billion $2.54 11.28

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

Institutional and Insider Ownership

44.7% of Rogers Communications shares are owned by institutional investors. Comparatively, 48.6% of DISH Network shares are owned by institutional investors. 49.2% of DISH Network shares are owned by company 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.

Summary

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

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.

DISH Network Company Profile

DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers video services under the DISH TV brand; and programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming packages. The company also provides access to movies and TV shows via TV or Internet-connected tablets, smartphones, and computers; and dishanywhere.com and mobile applications for smartphones and tablets to view authorized content, search program listings, and remotely control certain features. In addition, it offers Sling TV services, including Sling International, Sling Latino, Sling Orange, and Sling Blue services that require an Internet connection and are available on streaming-capable devices, such as TVs, tablets, computers, game consoles, and smart phones primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. Further, the company provides satellite and wireline broadband services under the dishNET brand, as well as has wireless spectrum licenses and related assets. As of December 31, 2017, it had 13.242 million Pay-TV subscribers. The company offers receiver systems and programming through direct sales channels, small satellite retailers, direct marketing groups, local and regional consumer electronics stores, retailers, and telecommunications companies. DISH Network Corporation was founded in 1980 and is headquartered in Englewood, Colorado.

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