Reviewing Rogers Communications (RCI) & Charter Communications (CHTR)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Rogers Communications and Charter Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communications 0 3 2 0 2.40
Charter Communications 1 4 12 0 2.65

Rogers Communications presently has a consensus target price of $62.00, suggesting a potential upside of 21.54%. Charter Communications has a consensus target price of $364.00, suggesting a potential upside of 13.28%. Given Rogers Communications’ higher possible upside, equities analysts clearly believe Rogers Communications is more favorable than Charter Communications.

Valuation and Earnings

This table compares Rogers Communications and Charter Communications’ 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 2.41 $1.32 billion $2.71 18.82
Charter Communications $41.58 billion 1.79 $9.90 billion $2.65 121.26

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

Dividends

Rogers Communications pays an annual dividend of $1.47 per share and has a dividend yield of 2.9%. Charter Communications does not pay a dividend. Rogers Communications pays out 54.2% of its earnings in the form of a dividend.

Volatility and Risk

Rogers Communications has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Charter Communications has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

46.1% of Rogers Communications shares are held by institutional investors. Comparatively, 71.1% of Charter Communications shares are held by institutional investors. 0.8% of Charter Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Rogers Communications 12.66% 29.52% 6.87%
Charter Communications 23.59% 1.45% 0.45%

Summary

Charter Communications beats Rogers Communications on 10 of the 16 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.

Charter Communications Company Profile

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States. It offers subscription-based video services, including video on demand, high definition television, digital video recorder, pay-per-view, spectrum guide services, and a package of basic video programming, as well as ad-supported free online video products. The company also provides Internet services, such as security suite that protects computers from viruses and spyware; in-home WiFi, which permits customers to lease high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; parental control features; and residential Internet services. In addition, it offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. Further, the company provides video programming and music, Web hosting, email and security, and multi-line telephone services, as well as Web-based service management; and sells video and online advertising inventory to local, regional, and national advertising customers. Additionally, it offers fiber-delivered communications and managed information technology solutions; and security and home management services, as well as owns and operates regional sports networks and local sports, news, and lifestyle channels. As of December 31, 2017, the company served approximately 27.2 million residential and business customers. Charter Communications, Inc. was founded in 1999 and is based in Stamford, Connecticut.

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