Rogers Communication (NYSE:RCI) versus StarHub (OTCMKTS:SRHBF) Financial Contrast

StarHub (OTCMKTS:SRHBF) and Rogers Communication (NYSE:RCI) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for StarHub and Rogers Communication, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StarHub	0	0	0	0	0.00
Rogers Communication	1	3	5	0	2.44

Rogers Communication has a consensus target price of $36.00, suggesting a potential upside of 6.30%. Given Rogers Communication’s stronger consensus rating and higher possible upside, analysts clearly believe Rogers Communication is more favorable than StarHub.

Valuation & Earnings

This table compares StarHub and Rogers Communication”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StarHub	N/A	N/A	N/A	$0.21	3.45
Rogers Communication	$22.62 billion	0.81	$4.93 billion	$8.28	4.09

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

Dividends

StarHub pays an annual dividend of $0.20 per share and has a dividend yield of 27.9%. Rogers Communication pays an annual dividend of $1.40 per share and has a dividend yield of 4.1%. StarHub pays out 96.2% 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 pays out 16.9% of its earnings in the form of a dividend.

Institutional & Insider Ownership

6.9% of StarHub shares are owned by institutional investors. Comparatively, 45.5% of Rogers Communication shares are owned by institutional investors. 29.0% of Rogers Communication shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StarHub	N/A	N/A	N/A
Rogers Communication	27.54%	11.56%	3.05%

Summary

Rogers Communication beats StarHub on 12 of the 13 factors compared between the two stocks.

About StarHub

StarHub Ltd provides communications, entertainment, and digital solutions for individuals and corporations in Singapore. It operates through two segments, Telecommunications and Cyber Security. The company provides television subscription and broadcasting services; broadband access, high speed wholesale broadband, and information security systems integration services; and security consultancy services; and information security and network security surveillance services. It also engages in computer systems integration, other professional, scientific, and technical activities; development and supply of data security products and components; provision of information security and network security surveillance services; sale of information technology security related products; distribution, sale, and servicing and rental of computer hardware, software, and related equipment, as well as provision of installation and maintenance services. The company was incorporated in 1998 and is headquartered in Singapore. StarHub Ltd is a subsidiary of Asia Mobile Holdings Pte. Ltd.

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.