Financial Comparison: Rogers Communication (NYSE:RCI) and StarHub (OTCMKTS:SRHBF)

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

Institutional and Insider Ownership

45.5% of Rogers Communication shares are held by institutional investors. Comparatively, 6.9% of StarHub shares are held by institutional investors. 29.0% of Rogers Communication shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$15.54 billion	1.18	$4.93 billion	$8.28	4.09
StarHub	N/A	N/A	N/A	$0.21	3.45

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.

Analyst Ratings

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

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

Rogers Communication currently has a consensus target price of $36.00, suggesting a potential upside of 6.23%. Given Rogers Communication’s stronger consensus rating and higher possible upside, research analysts clearly believe Rogers Communication is more favorable than StarHub.

Profitability

This table compares Rogers Communication and StarHub’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%
StarHub	N/A	N/A	N/A

Dividends

Rogers Communication pays an annual dividend of $1.45 per share and has a dividend yield of 4.3%. StarHub pays an annual dividend of $0.20 per share and has a dividend yield of 27.9%. Rogers Communication pays out 17.5% of its earnings in the form of a dividend. 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.

Summary

Rogers Communication beats StarHub on 12 of the 13 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 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.