Head-To-Head Review: Liberty Global PLC Class A (LBTYA) & Rogers Communications Inc. Class B (RCI)

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Liberty Global PLC Class A (NYSE: RCI) and Rogers Communications Inc. Class B (NYSE:RCI) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Risk & Volatility

Liberty Global PLC Class A has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Rogers Communications Inc. Class B has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Dividends

Rogers Communications Inc. Class B pays an annual dividend of $1.48 per share and has a dividend yield of 2.8%. Liberty Global PLC Class A does not pay a dividend. Rogers Communications Inc. Class B pays out 54.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Liberty Global PLC Class A and Rogers Communications Inc. Class B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Global PLC Class A 3 1 10 0 2.50
Rogers Communications Inc. Class B 0 3 2 0 2.40

Liberty Global PLC Class A presently has a consensus price target of $40.30, suggesting a potential upside of 47.08%. Rogers Communications Inc. Class B has a consensus price target of $62.00, suggesting a potential upside of 16.78%. Given Liberty Global PLC Class A’s stronger consensus rating and higher possible upside, research analysts plainly believe Liberty Global PLC Class A is more favorable than Rogers Communications Inc. Class B.

Valuation and Earnings

This table compares Liberty Global PLC Class A and Rogers Communications Inc. Class B’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Global PLC Class A $15.05 billion 1.40 -$2.78 billion ($2.29) -11.97
Rogers Communications Inc. Class B $10.91 billion 2.51 $1.32 billion $2.71 19.59

Rogers Communications Inc. Class B has lower revenue, but higher earnings than Liberty Global PLC Class A. Liberty Global PLC Class A is trading at a lower price-to-earnings ratio than Rogers Communications Inc. Class B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Global PLC Class A and Rogers Communications Inc. Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Global PLC Class A -11.46% -27.88% -3.31%
Rogers Communications Inc. Class B 12.66% 29.52% 6.87%

Institutional & Insider Ownership

21.2% of Liberty Global PLC Class A shares are held by institutional investors. Comparatively, 47.6% of Rogers Communications Inc. Class B shares are held by institutional investors. 5.9% of Liberty Global PLC Class A shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Rogers Communications Inc. Class B beats Liberty Global PLC Class A on 9 of the 16 factors compared between the two stocks.

Liberty Global PLC Class A Company Profile

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

Rogers Communications Inc. Class B 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.

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