Comparing Quebecor (OTCMKTS:QBCRF) and IDT (NYSE:IDT)

Quebecor (OTCMKTS:QBCRF) and IDT (NYSE:IDT) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

59.3% of IDT shares are owned by institutional investors. 23.8% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Quebecor and IDT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quebecor	16.30%	33.21%	7.17%
IDT	6.67%	24.22%	12.69%

Earnings & Valuation

This table compares Quebecor and IDT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quebecor	$4.06 billion	2.66	$612.64 million	$1.46	33.01
IDT	$1.30 billion	1.57	$86.63 million	$3.47	23.69

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

Analyst Recommendations

This is a summary of current ratings and target prices for Quebecor and IDT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quebecor	0	3	3	0	2.50
IDT	0	1	2	0	2.67

IDT has a consensus target price of $85.00, suggesting a potential upside of 3.38%. Given IDT’s stronger consensus rating and higher possible upside, analysts clearly believe IDT is more favorable than Quebecor.

Dividends

Quebecor pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. IDT pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. Quebecor pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDT pays out 8.1% of its earnings in the form of a dividend. IDT has raised its dividend for 1 consecutive years.

Summary

IDT beats Quebecor on 8 of the 15 factors compared between the two stocks.

About Quebecor

Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. The Telecommunications segment offers internet access, television distribution, mobile and wireline telephony, business solutions, and over-the-top video services. The Media segment operates an over-the-air television network and specialty television services; soundstage and equipment rental and postproduction services for the film and television industries; printing, publishing, and distribution of daily newspapers; news and entertainment digital platforms; publishing and distribution of magazines; production and distribution of audiovisual content; and out-of-home advertising business. The Sports and Entertainment segment engages in the operation and management of the Videotron Centre; show production, sporting, and cultural event management; publishing and distribution of books; production of music; and the operation of Quebec Maritimes Junior Hockey League team. The company was incorporated in 1965 and is headquartered in Montreal, Canada. Quebecor Inc. operates as a subsidiary of Les Placements Peladeau, Inc.

About IDT

IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.