Rogers Communications vs BCE Which Should You Buy?

Rogers Communications and BCE are two of the largest telecommunications companies in Canada, both offering a wide range of services including wireless, internet, and television. Investors looking to add telecommunications stocks to their portfolio may consider comparing these two companies. Rogers Communications has historically been seen as a more stable investment with consistent growth, while BCE has shown potential for higher earnings and expansion opportunities. Understanding the strengths and weaknesses of each company can help investors make informed decisions about their investments.

Rogers Communications or BCE?

When comparing Rogers Communications and BCE, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Rogers Communications and BCE.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Rogers Communications has a dividend yield of 3.14%, while BCE has a dividend yield of 10.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Rogers Communications reports a 5-year dividend growth of 0.01% year and a payout ratio of 49.80%. On the other hand, BCE reports a 5-year dividend growth of 2.75% year and a payout ratio of 1394.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Rogers Communications P/E ratio at 17.67 and BCE's P/E ratio at 128.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Rogers Communications P/B ratio is 2.36 while BCE's P/B ratio is 1.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Rogers Communications has seen a 5-year revenue growth of 0.26%, while BCE's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Rogers Communications's ROE at 14.01% and BCE's ROE at 1.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.84 for Rogers Communications and $26.57 for BCE. Over the past year, Rogers Communications's prices ranged from $34.84 to $48.19, with a yearly change of 38.34%. BCE's prices fluctuated between $26.45 and $41.77, with a yearly change of 57.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.