Rogers Communications (RCI) vs. China Unicom (Hong Kong) (CHU) Critical Comparison

Rogers Communications (NYSE: RCI) and China Unicom (Hong Kong) (NYSE:CHU) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Insider and Institutional Ownership

47.2% of Rogers Communications shares are held by institutional investors. Comparatively, 0.9% of China Unicom (Hong Kong) shares are held by institutional investors. 77.5% of China Unicom (Hong Kong) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Rogers Communications pays an annual dividend of $1.54 per share and has a dividend yield of 3.1%. China Unicom (Hong Kong) does not pay a dividend. Rogers Communications pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Rogers Communications has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, China Unicom (Hong Kong) has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Rogers Communications and China Unicom (Hong Kong), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communications 0 4 2 0 2.33
China Unicom (Hong Kong) 3 2 4 0 2.11

Rogers Communications currently has a consensus price target of $62.50, suggesting a potential upside of 24.83%. Given Rogers Communications’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Rogers Communications is more favorable than China Unicom (Hong Kong).

Profitability

This table compares Rogers Communications and China Unicom (Hong Kong)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rogers Communications 9.20% 30.40% 6.09%
China Unicom (Hong Kong) N/A N/A N/A

Valuation & Earnings

This table compares Rogers Communications and China Unicom (Hong Kong)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers Communications $10.35 billion 2.49 $630.59 million $1.89 26.49
China Unicom (Hong Kong) $41.29 billion 1.03 $90.00 million N/A N/A

Rogers Communications has higher earnings, but lower revenue than China Unicom (Hong Kong).

Summary

Rogers Communications beats China Unicom (Hong Kong) on 10 of the 14 factors compared between the two stocks.

Rogers Communications 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.

China Unicom (Hong Kong) Company Profile

China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services. The Company’s businesses include mobile businesses, fixed-line businesses and others. Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services. Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.

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