Shaw Communications (NYSE: SJR) and Oi SA (NYSE:OIBR) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares Shaw Communications and Oi SA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shaw Communications $4.31 billion 2.61 $1.72 billion $1.33 17.17
Oi SA N/A N/A N/A N/A N/A

Shaw Communications has higher revenue and earnings than Oi SA.

Profitability

This table compares Shaw Communications and Oi SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shaw Communications 16.80% 9.54% 3.69%
Oi SA -24.34% -49.64% -7.06%

Analyst Ratings

This is a breakdown of current recommendations for Shaw Communications and Oi SA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 1 4 2 0 2.14
Oi SA 0 0 0 0 N/A

Shaw Communications currently has a consensus target price of $27.50, indicating a potential upside of 20.40%. Given Shaw Communications’ higher probable upside, research analysts clearly believe Shaw Communications is more favorable than Oi SA.

Insider and Institutional Ownership

51.9% of Shaw Communications shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Shaw Communications pays an annual dividend of $0.95 per share and has a dividend yield of 4.2%. Oi SA does not pay a dividend. Shaw Communications pays out 71.4% of its earnings in the form of a dividend.

Summary

Shaw Communications beats Oi SA on 9 of the 10 factors compared between the two stocks.

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.

About Oi SA

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.

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