Contrasting Rogers Communication (NYSE:RCI) & VEON (NASDAQ:VEON)

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

Volatility & Risk

Rogers Communication has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, VEON has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Dividends

Rogers Communication pays an annual dividend of $1.45 per share and has a dividend yield of 3.7%. VEON pays an annual dividend of $0.23 per share and has a dividend yield of 0.5%. Rogers Communication pays out 16.1% of its earnings in the form of a dividend. VEON pays out 1.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current recommendations for Rogers Communication and VEON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	4	3	0	2.25
VEON	0	2	1	1	2.75

Rogers Communication presently has a consensus price target of $33.00, indicating a potential downside of 15.62%. VEON has a consensus price target of $60.00, indicating a potential upside of 24.61%. Given VEON’s stronger consensus rating and higher possible upside, analysts plainly believe VEON is more favorable than Rogers Communication.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rogers Communication	32.49%	17.14%	3.45%
VEON	23.75%	72.76%	12.22%

Institutional and Insider Ownership

45.5% of Rogers Communication shares are owned by institutional investors. Comparatively, 21.3% of VEON shares are owned by institutional investors. 29.0% of Rogers Communication shares are owned by 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.

Valuation and Earnings

This table compares Rogers Communication and VEON”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$21.02 billion	1.01	$1.27 billion	$9.00	4.35
VEON	$4.15 billion	0.86	$415.00 million	$13.64	3.53

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

Summary

Rogers Communication beats VEON on 9 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 VEON

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.