Adeia (NASDAQ:ADEA – Get Rating) and Rogers Communications (NYSE:RCI – Get Rating) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Risk and Volatility
Adeia has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Rogers Communications has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Profitability
This table compares Adeia and Rogers Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adeia | -43.84% | 18.41% | 8.29% |
| Rogers Communications | 11.49% | 19.36% | 3.58% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adeia | $417.71 million | 2.32 | -$295.88 million | ($2.86) | -3.19 |
| Rogers Communications | $15.61 billion | 1.59 | $1.29 billion | $2.62 | 18.74 |
Rogers Communications has higher revenue and earnings than Adeia. Adeia is trading at a lower price-to-earnings ratio than Rogers Communications, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.9% of Adeia shares are held by institutional investors. Comparatively, 45.5% of Rogers Communications shares are held by institutional investors. 0.4% of Adeia shares are held by company insiders. Comparatively, 29.0% of Rogers Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Adeia pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. Rogers Communications pays an annual dividend of $1.47 per share and has a dividend yield of 3.0%. Adeia pays out -7.0% of its earnings in the form of a dividend. Rogers Communications pays out 56.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Adeia and Rogers Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adeia | 0 | 0 | 2 | 0 | 3.00 |
| Rogers Communications | 0 | 1 | 5 | 0 | 2.83 |
Adeia presently has a consensus price target of $15.00, suggesting a potential upside of 64.47%. Rogers Communications has a consensus price target of $74.31, suggesting a potential upside of 51.34%. Given Adeia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Adeia is more favorable than Rogers Communications.
Summary
Rogers Communications beats Adeia on 9 of the 16 factors compared between the two stocks.
About Adeia
Adeia Inc., together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It licenses its innovations to companies in the entertainment industry under the Adeia brand. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers, social media, and other new media companies, such as subscription video-on-demand service providers and social media companies; consumer electronics manufacturers, which includes smart televisions, streaming media devices, video game consoles, mobile devices, DVRs, and other connected media devices; and semiconductors, including sensors, radio frequency components, memory, and logic devices. The company was incorporated in 2019 and is headquartered in San Jose, California.
About Rogers Communications
Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device and accessory financing, wireless home phone, device protection, e-mail, global voice and data roaming, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device delivery services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands to approximately 11.3 million subscribers. It also provides Internet and WiFi services; smart home monitoring services, such as monitoring, security, automation, energy efficiency, and smart control through a smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; 4K television programming; and televised content on smartphones, tablets, and personal computers, as well as operates Ignite TV and Ignite TV app. Further, it provides residential and small business local telephony services; calling features, such as voicemail, call waiting, and long distance; voice, data networking, Internet protocol, and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; IT and network technologies; and cable access network services. The company also owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 55 AM and FM radio stations. The company was founded in 1960 and is headquartered in Toronto, Canada.
Receive News & Ratings for Adeia Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Adeia and related companies with MarketBeat.com's FREE daily email newsletter.
