Reviewing Rogers Communications (RCI) & Walt Disney (DIS)

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

Risk & Volatility

Rogers Communications has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Walt Disney has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rogers Communications and Walt Disney’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers Communications $10.91 billion 2.43 $1.32 billion $2.71 18.98
Walt Disney $55.14 billion 3.10 $8.98 billion $5.70 20.14

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

Dividends

Rogers Communications pays an annual dividend of $1.47 per share and has a dividend yield of 2.9%. Walt Disney pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Rogers Communications pays out 54.2% of its earnings in the form of a dividend. Walt Disney pays out 29.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Rogers Communications and Walt Disney’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rogers Communications 12.66% 29.52% 6.87%
Walt Disney 20.76% 21.37% 10.45%

Insider and Institutional Ownership

46.0% of Rogers Communications shares are held by institutional investors. Comparatively, 63.0% of Walt Disney shares are held by institutional investors. 0.4% of Walt Disney shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rogers Communications and Walt Disney, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers Communications 0 3 2 0 2.40
Walt Disney 1 8 12 0 2.52

Rogers Communications presently has a consensus target price of $62.00, suggesting a potential upside of 20.53%. Walt Disney has a consensus target price of $119.70, suggesting a potential upside of 4.29%. Given Rogers Communications’ higher probable upside, equities research analysts clearly believe Rogers Communications is more favorable than Walt Disney.

Summary

Walt Disney beats Rogers Communications on 13 of the 16 factors compared between the two stocks.

Rogers Communications Company Profile

Rogers Communications Inc. operates as a communications and media company in Canada. The company's Wireless segment offers wireless telecommunications services to consumers and businesses under the Rogers, Fido, and chatr brands; and wireless devices, services, and applications. This segment distributes its products through independent dealer networks, company-owned retail stores, retail chains and convenience stores, e-commerce sites, call centers and outbound telemarketing, and other distribution channels. As of December 31, 2017, it had approximately 10.5 million subscribers. The company's Cable segment provides high-speed broadband Internet access, digital television and online viewing, phone, and home Wi-Fi services to consumers, businesses, and enterprises; and monitoring, security, automation, energy efficiency, and smart control services. This segment also offers network connectivity services through its fiber network and data center assets through its sales team, third-party retailers, and a network of third-party channel distributors to the enterprise, public sector, and carrier wholesale markets. It distributes its products through company-owned retail stores, e-commerce sites, call centers, outbound telemarketing, door-to-door agents, and other retail locations. This segment had approximately 2.2 million high-speed Internet subscribers, 1.7 million television subscribers, and 1.1 million phone subscribers, as well as operated a network that passes 4.3 million homes. Its Media segment offers multi-platform televised and online shopping, digital media services, and publishing services; and operates television networks and radio stations, as well as owns the Toronto Blue Jays, a league baseball team and Rogers Centre event venue. The company also provides credit cards. Rogers Communications Inc. was founded in 1920 and is headquartered in Toronto, Canada.

Walt Disney Company Profile

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates cable programming services under the brand ESPN, Disney, and Freeform; broadcast businesses, which include the ABC TV Network and eight owned television stations; radio businesses consisting of the ESPN Radio network; and the Radio Disney network. It also produces and sells original live-action and animated television programming to first-run syndication and other television markets, as well as subscription video on demand services and in home entertainment formats, such as DVD, Blu-Ray, and electric home video license. Its Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. This segment also operates Disney Resort & Spa in Hawaii, Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and manages Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company's Studio Entertainment segment produces and acquires live-action and animated motion pictures for distribution in the theatrical, home entertainment, and television markets primarily under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm, and Touchstone banners. This segment also produces stage plays and musical recordings; licenses and produces live entertainment events; and provides visual and audio effects, and other post-production services. Its Consumer Products & Interactive Media segment licenses its trade names, characters, and visual and literary properties; develops and publishes mobile games; and sells its products through The Disney Store, shopDisney.com, and shop.Marvel.com, as well as directly to retailers. The company was founded in 1923 and is based in Burbank, California.

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