Shaw Communications (NYSE: SJR) is one of 47 public companies in the “Integrated Telecommunications Services” industry, but how does it compare to its rivals? We will compare Shaw Communications to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Risk and Volatility

Shaw Communications has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Shaw Communications’ rivals have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Shaw Communications and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Shaw Communications $4.19 billion $1.67 billion 28.41
Shaw Communications Competitors $12.65 billion $4.22 billion 1.08

Shaw Communications’ rivals have higher revenue and earnings than Shaw Communications. Shaw Communications is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Shaw Communications pays an annual dividend of $0.95 per share and has a dividend yield of 4.2%. Shaw Communications pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 5.1% and pay out 841.4% of their earnings in the form of a dividend.

Profitability

This table compares Shaw Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shaw Communications 10.01% 9.31% 3.57%
Shaw Communications Competitors 0.55% -0.34% 1.45%

Analyst Ratings

This is a summary of recent ratings and target prices for Shaw Communications and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 1 3 3 0 2.29
Shaw Communications Competitors 611 1674 1934 74 2.34

Shaw Communications presently has a consensus target price of $27.33, suggesting a potential upside of 20.25%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 31.64%. Given Shaw Communications’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Shaw Communications has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

51.9% of Shaw Communications shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 1.0% of Shaw Communications shares are owned by company insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are owned by company 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.

Summary

Shaw Communications rivals beat Shaw Communications on 10 of the 15 factors compared.

Shaw Communications Company Profile

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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