Analyzing Quebecor (OTCMKTS:QBCRF) & Rogers Communication (NYSE:RCI)

Rogers Communication (NYSE:RCI) and Quebecor (OTCMKTS:QBCRF) are both large-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Rogers Communication and Quebecor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$15.54 billion	1.27	$4.93 billion	$8.28	4.40
Quebecor	$4.06 billion	2.59	$612.64 million	$1.46	31.92

Rogers Communication has higher revenue and earnings than Quebecor. Rogers Communication 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 for Rogers Communication and Quebecor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	3	5	0	2.44
Quebecor	0	3	4	0	2.57

Rogers Communication presently has a consensus target price of $36.00, suggesting a potential downside of 1.20%. Given Rogers Communication’s higher probable upside, research analysts plainly believe Rogers Communication is more favorable than Quebecor.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rogers Communication	27.54%	11.56%	3.05%
Quebecor	16.30%	34.04%	7.19%

Dividends

Rogers Communication pays an annual dividend of $1.45 per share and has a dividend yield of 4.0%. Quebecor pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Rogers Communication pays out 17.5% of its earnings in the form of a dividend. 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. Rogers Communication is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rogers Communication beats Quebecor on 10 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 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.