Contrasting Rogers Communication (NYSE:RCI) & BCE (NYSE:BCE)

Rogers Communication (NYSE:RCI) and BCE (NYSE:BCE) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares Rogers Communication and BCE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rogers Communication	7.33%	21.59%	3.72%
BCE	1.96%	18.89%	3.74%

Dividends

Rogers Communication pays an annual dividend of $1.44 per share and has a dividend yield of 4.0%. BCE pays an annual dividend of $1.27 per share and has a dividend yield of 5.4%. Rogers Communication pays out 71.6% of its earnings in the form of a dividend. BCE pays out 437.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rogers Communication and BCE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	3	3	0	2.29
BCE	4	8	2	1	2.00

Rogers Communication presently has a consensus price target of $59.00, suggesting a potential upside of 65.01%. BCE has a consensus price target of $38.67, suggesting a potential upside of 63.18%. Given Rogers Communication’s stronger consensus rating and higher probable upside, research analysts clearly believe Rogers Communication is more favorable than BCE.

Insider & Institutional Ownership

45.5% of Rogers Communication shares are owned by institutional investors. Comparatively, 41.5% of BCE shares are owned by institutional investors. 29.0% of Rogers Communication shares are owned by insiders. Comparatively, 0.2% of BCE shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Rogers Communication has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, BCE has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Rogers Communication and BCE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$15.04 billion	1.28	$1.27 billion	$2.01	17.79
BCE	$17.82 billion	1.24	$251.05 million	$0.29	81.71

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

Summary

Rogers Communication beats BCE on 12 of the 17 factors compared between the two stocks.

About Rogers Communication

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and express pickup services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and monitoring, security, automation, energy efficiency, and smart control through smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; and 4K television programming. Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; voice, data networking, Internet protocol (IP), and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices, as well as operates Ignite TV and Ignite TV app. Additionally, the company owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 52 AM and FM radio stations. It also offers Rogers and the Rogers World Elite Mastercard. The company was founded in 1960 and is headquartered in Toronto, Canada.

About BCE

BCE Inc., a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services from or to resellers and other carriers; and operates consumer electronics retail stores. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.