Quebecor (OTCMKTS:QBCRF) versus StarHub (OTCMKTS:SRHBY) Financial Contrast

StarHub (OTCMKTS:SRHBY) and Quebecor (OTCMKTS:QBCRF) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Dividends

StarHub pays an annual dividend of $1.80 per share and has a dividend yield of 22.2%. Quebecor pays an annual dividend of $1.18 per share and has a dividend yield of 2.4%. StarHub pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Quebecor pays out 171.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. StarHub is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for StarHub and Quebecor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StarHub	0	0	0	0	0.00
Quebecor	0	2	4	0	2.67

Profitability

This table compares StarHub and Quebecor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StarHub	N/A	N/A	N/A
Quebecor	15.55%	33.84%	7.02%

Valuation and Earnings

This table compares StarHub and Quebecor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StarHub	N/A	N/A	N/A	$2.08	3.90
Quebecor	$4.06 billion	2.72	$612.64 million	$0.69	71.01

Quebecor has higher revenue and earnings than StarHub. StarHub is trading at a lower price-to-earnings ratio than Quebecor, indicating that it is currently the more affordable of the two stocks.

Summary

Quebecor beats StarHub on 7 of the 10 factors compared between the two stocks.

About StarHub

StarHub Ltd provides communications, entertainment, and digital solutions for individuals and corporations in Singapore. It operates through two segments, Telecommunications and Cyber Security. The company provides television subscription and broadcasting services; broadband access, high speed wholesale broadband, and information security systems integration services; and security consultancy services; and information security and network security surveillance services. It also engages in computer systems integration, other professional, scientific, and technical activities; development and supply of data security products and components; provision of information security and network security surveillance services; sale of information technology security related products; distribution, sale, and servicing and rental of computer hardware, software, and related equipment, as well as provision of installation and maintenance services. The company was incorporated in 1998 and is headquartered in Singapore. StarHub Ltd is a subsidiary of Asia Mobile Holdings Pte. Ltd.

About Quebecor

Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. The Telecommunications segment offers internet access, television distribution, mobile and wireline telephony, business solutions, and over-the-top video services. The Media segment operates an over-the-air television network and specialty television services; soundstage and equipment rental and postproduction services for the film and television industries; printing, publishing, and distribution of daily newspapers; news and entertainment digital platforms; publishing and distribution of magazines; production and distribution of audiovisual content; and out-of-home advertising business. The Sports and Entertainment segment engages in the operation and management of the Videotron Centre; show production, sporting, and cultural event management; publishing and distribution of books; production of music; and the operation of Quebec Maritimes Junior Hockey League team. The company was incorporated in 1965 and is headquartered in Montreal, Canada. Quebecor Inc. operates as a subsidiary of Les Placements Peladeau, Inc.