Array Digital Infrastructure (NYSE:AD – Get Free Report) and Rogers Communication (NYSE:RCI – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings for Array Digital Infrastructure and Rogers Communication, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Array Digital Infrastructure | 0 | 3 | 3 | 0 | 2.50 |
| Rogers Communication | 1 | 2 | 6 | 0 | 2.56 |
Array Digital Infrastructure presently has a consensus target price of $47.40, indicating a potential upside of 40.47%. Rogers Communication has a consensus target price of $35.00, indicating a potential upside of 9.12%. Given Array Digital Infrastructure’s higher possible upside, research analysts plainly believe Array Digital Infrastructure is more favorable than Rogers Communication.
Volatility and Risk
Array Digital Infrastructure has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Rogers Communication has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Insider & Institutional Ownership
18.0% of Array Digital Infrastructure shares are held by institutional investors. Comparatively, 45.5% of Rogers Communication shares are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by company insiders. Comparatively, 29.0% of Rogers Communication shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Array Digital Infrastructure and Rogers Communication’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Array Digital Infrastructure | 250.79% | 8.52% | 4.15% |
| Rogers Communication | 27.54% | 11.56% | 3.05% |
Valuation & Earnings
This table compares Array Digital Infrastructure and Rogers Communication”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Array Digital Infrastructure | $162.96 million | 17.91 | $48.76 million | $6.20 | 5.44 |
| Rogers Communication | $22.62 billion | 0.77 | $4.93 billion | $8.28 | 3.87 |
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 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.
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.
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