Critical Survey: OI (OIBR) vs. Shaw Communications (SJR)
OI (NYSE: OIBR) and Shaw Communications (NYSE:SJR) are both telecommunications services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Shaw Communications pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. OI does not pay a dividend. Shaw Communications pays out 69.2% of its earnings in the form of a dividend.
Risk & Volatility
OI has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Shaw Communications has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Institutional & Insider Ownership
52.8% of Shaw Communications shares are held by institutional investors. 1.0% of Shaw Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares OI and Shaw Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares OI and Shaw Communications’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shaw Communications||$3.70 billion||2.86||$644.63 million||$1.33||16.76|
Shaw Communications has higher revenue and earnings than OI. OI is trading at a lower price-to-earnings ratio than Shaw Communications, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for OI and Shaw Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shaw Communications has a consensus target price of $27.20, indicating a potential upside of 22.03%. Given Shaw Communications’ higher possible upside, analysts plainly believe Shaw Communications is more favorable than OI.
Shaw Communications beats OI on 10 of the 12 factors compared between the two stocks.
Oi S.A. is an integrated telecommunications service provider in Brazil. The Company is a switched fixed-line telephony services (STFC) concessionaire. It is engaged in the provision of STFC as a local and intraregional long-distance carrier. Its segments include Residential Services, Personal Mobility, and SMEs/Corporate. It offers a range of integrated telecommunications services that include fixed and mobile, broadband, pay television (TV), data transmission and Internet provider services. The Company’s Residential Services segment is focused on the sale of fixed telephony services, including voice services, data communication services (broadband), and pay TV. The Personal Mobility segment is focused on the sale of mobile telephony services to subscription and prepaid customers, and mobile broadband customer. The SMEs/Corporate segment includes corporate solutions offered to its small, medium-sized, and large corporate customers.
About Shaw Communications
Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.
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