Critical Comparison: Rogers Communication (NYSE:RCI) and Towerstream (OTCMKTS:TWER)

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

Risk and Volatility

Towerstream has a beta of -560.31, meaning that its stock price is 56,131% less volatile than the S&P 500. Comparatively, Rogers Communication has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Insider & Institutional Ownership

45.5% of Rogers Communication shares are held by institutional investors. 6.4% of Towerstream 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Towerstream and Rogers Communication, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Towerstream 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 4.48%. Given Rogers Communication’s stronger consensus rating and higher probable upside, analysts clearly believe Rogers Communication is more favorable than Towerstream.

Profitability

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

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

Valuation & Earnings

This table compares Towerstream and Rogers Communication”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Towerstream N/A N/A N/A N/A N/A
Rogers Communication $15.54 billion 1.20 $4.93 billion $8.28 4.16

Rogers Communication has higher revenue and earnings than Towerstream.

Summary

Rogers Communication beats Towerstream on 10 of the 10 factors compared between the two stocks.

About Towerstream

(Get Free Report)

Towerstream Corporation, together with its subsidiaries, provides fixed wireless broadband services over a wireless network transmitting over regulated and unregulated radio spectrum to commercial customers in the United States. Its wireless broadband service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data, and video services. The company also offers business class Internet services, such as single tenant service that delivers fixed wireless broadband to a single client through a radio receiver/transmitter on the client’s building dedicated solely to that client; and on-net services to connect building at once and at a cost similar for one high bandwidth customer requiring point-to-point equipment. In addition, it provides temporary Internet solutions to provide solutions for a client’s short-term connection requirements in locations where fiber, copper, and cable infrastructure does not exist or is cost prohibitive. Further, the company offers wholesale Internet services to deliver dedicated Internet access and point-to-point transport solutions with bandwidth options from 5Mbps to 10mbps through fixed wireless network. It serves business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno, and Providence-Newport. The company offers its services through direct sales force. Towerstream Corporation was founded in 1999 and is headquartered in Middletown, Rhode Island.

About Rogers Communication

(Get Free Report)

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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