Contrasting Grupo Televisa (NYSE:TV) & Rogers Communication (NYSE:RCI)

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

Earnings & Valuation

This table compares Rogers Communication and Grupo Televisa”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$21.02 billion	0.96	$1.27 billion	$9.00	4.16
Grupo Televisa	$59.56 billion	0.03	-$453.78 million	($1.01)	-2.89

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

Risk and Volatility

Rogers Communication has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Dividends

Rogers Communication pays an annual dividend of $1.43 per share and has a dividend yield of 3.8%. Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. Rogers Communication pays out 15.9% of its earnings in the form of a dividend. Grupo Televisa pays out -7.9% 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 Ratings

This is a breakdown of recent ratings and target prices for Rogers Communication and Grupo Televisa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	5	3	0	2.22
Grupo Televisa	1	2	3	0	2.33

Rogers Communication presently has a consensus price target of $36.00, suggesting a potential downside of 3.94%. Grupo Televisa has a consensus price target of $5.07, suggesting a potential upside of 73.81%. Given Grupo Televisa’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Televisa is more favorable than Rogers Communication.

Profitability

This table compares Rogers Communication and Grupo Televisa’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%
Grupo Televisa	-18.27%	-9.49%	-4.37%

Institutional & Insider Ownership

45.5% of Rogers Communication shares are held by institutional investors. Comparatively, 55.8% of Grupo Televisa shares are held by institutional investors. 29.0% of Rogers Communication shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Rogers Communication beats Grupo Televisa on 9 of the 15 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 Grupo Televisa

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.