Head-To-Head Review: Rogers Communications (RCI) and Liberty Global (LBTYB)

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

Dividends

Rogers Communications pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. Liberty Global does not pay a dividend. Rogers Communications pays out 43.0% of its earnings in the form of a dividend. Rogers Communications has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

44.6% of Rogers Communications shares are owned by institutional investors. 6.5% of Liberty Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Rogers Communications and Liberty Global, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communications 0 5 3 0 2.38
Liberty Global 0 0 0 0 N/A

Rogers Communications currently has a consensus target price of $52.91, suggesting a potential downside of 0.86%. Given Rogers Communications’ higher possible upside, research analysts plainly believe Rogers Communications is more favorable than Liberty Global.

Profitability

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

Net Margins Return on Equity Return on Assets
Rogers Communications 13.63% 29.05% 7.27%
Liberty Global -2.06% -36.93% -3.54%

Volatility & Risk

Rogers Communications has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers Communications $11.65 billion 2.36 $1.59 billion $3.35 15.93
Liberty Global $15.05 billion 1.29 -$2.78 billion N/A N/A

Rogers Communications has higher earnings, but lower revenue than Liberty Global.

Summary

Rogers Communications beats Liberty Global on 10 of the 14 factors compared between the two stocks.

About Rogers Communications

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.

About Liberty Global

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

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