Financial Comparison: Rogers Communication (RCI) vs. NTT DOCOMO (DCM)

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

Valuation and Earnings

This table compares Rogers Communication and NTT DOCOMO’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rogers Communication $10.99 billion 2.42 $4.06 billion $1.48 34.97
NTT DOCOMO $42.18 billion 2.02 $12.78 billion $1.58 14.53

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

Volatility and Risk

Rogers Communication has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rogers Communication and NTT DOCOMO, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communication 0 5 3 0 2.38
NTT DOCOMO 0 3 1 0 2.25

Rogers Communication presently has a consensus price target of $57.00, suggesting a potential upside of 10.12%. Given Rogers Communication’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Rogers Communication is more favorable than NTT DOCOMO.

Institutional and Insider Ownership

47.6% of Rogers Communication shares are owned by institutional investors. Comparatively, 0.5% of NTT DOCOMO shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Rogers Communication 7.42% 28.90% 5.64%
NTT DOCOMO 13.90% 11.44% 8.65%

Dividends

Rogers Communication pays an annual dividend of $1.51 per share and has a dividend yield of 2.9%. NTT DOCOMO pays an annual dividend of $0.68 per share and has a dividend yield of 3.0%. Rogers Communication pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NTT DOCOMO pays out 43.0% of its earnings in the form of a dividend. NTT DOCOMO is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rogers Communication beats NTT DOCOMO on 8 of the 15 factors compared between the two stocks.

Rogers Communication Company Profile

Rogers Communications Inc. is a communications and media company. The Company provides wireless communications services, and cable television, Internet, information technology (IT) and telephony services to consumers and businesses. Its segments include Wireless, Cable, Business Solutions and Media. The Wireless segment is engaged in wireless telecommunications operations for Canadian consumers and businesses. The Cable segment include cable telecommunications operations, including Internet, television and telephony (phone) services for Canadian consumers and businesses. The Business Solutions segment is engaged in network connectivity through its fiber network and data center assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector and carrier wholesale markets. The Media segment has a portfolio of media properties, including sports media and entertainment, multi-platform shopping, digital media and publishing.

NTT DOCOMO Company Profile

NTT DOCOMO, INC. (DOCOMO) is a mobile telecommunications carrier. The Company operates through three segments: telecommunications business, smart life business and other businesses. The telecommunications business segment includes mobile phone services (long-term evolution (LTE) (Xi) services and freedom of mobile multimedia access (FOMA) services), optical-fiber broadband service, satellite mobile communications services, international services and equipment sales related to these services. The smart life business segment includes video and music distribution, electronic books and other services offered through its dmarket portal, as well as finance/payment services, shopping services and various other services to support the Company’s customers’ daily lives. Its other businesses segment primarily includes Mobile Device Protection Service, as well as the development, sale and maintenance of information technology (IT) systems.

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