Rogers Communication (NYSE:RCI) and Array Digital Infrastructure (NYSE:AD) Head-To-Head Review

Rogers Communication (NYSE:RCI) and Array Digital Infrastructure (NYSE:AD) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

45.5% of Rogers Communication shares are held by institutional investors. Comparatively, 18.0% of Array Digital Infrastructure shares are held by institutional investors. 29.0% of Rogers Communication shares are held by insiders. Comparatively, 0.1% of Array Digital Infrastructure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Rogers Communication has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rogers Communication and Array Digital Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	2	6	0	2.56
Array Digital Infrastructure	0	3	3	0	2.50

Rogers Communication presently has a consensus target price of $35.00, suggesting a potential upside of 9.12%. Array Digital Infrastructure has a consensus target price of $47.40, suggesting a potential upside of 40.47%. Given Array Digital Infrastructure’s higher probable upside, analysts plainly believe Array Digital Infrastructure is more favorable than Rogers Communication.

Profitability

This table compares Rogers Communication and Array Digital Infrastructure’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%
Array Digital Infrastructure	250.79%	8.52%	4.15%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$22.62 billion	0.77	$4.93 billion	$8.28	3.87
Array Digital Infrastructure	$162.96 million	17.91	$48.76 million	$6.20	5.44

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

Summary

Rogers Communication beats Array Digital Infrastructure on 9 of the 14 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 Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.