Lumen Technologies (NYSE:LUMN – Get Free Report) and Rogers Communication (NYSE:RCI – Get Free Report) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Lumen Technologies and Rogers Communication, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lumen Technologies | 1 | 5 | 1 | 0 | 2.00 |
| Rogers Communication | 1 | 5 | 3 | 0 | 2.22 |
Lumen Technologies presently has a consensus target price of $6.72, suggesting a potential downside of 17.63%. Rogers Communication has a consensus target price of $36.00, suggesting a potential downside of 1.50%. Given Rogers Communication’s stronger consensus rating and higher probable upside, analysts clearly believe Rogers Communication is more favorable than Lumen Technologies.
Risk & Volatility
Profitability
This table compares Lumen Technologies and Rogers Communication’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lumen Technologies | -13.02% | -158.40% | -0.78% |
| Rogers Communication | 32.49% | 17.14% | 3.45% |
Institutional and Insider Ownership
66.2% of Lumen Technologies shares are owned by institutional investors. Comparatively, 45.5% of Rogers Communication shares are owned by institutional investors. 2.3% of Lumen Technologies shares are owned by company insiders. Comparatively, 29.0% of Rogers Communication shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Lumen Technologies and Rogers Communication”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lumen Technologies | $13.11 billion | 0.64 | -$55.00 million | ($1.65) | -4.94 |
| Rogers Communication | $15.04 billion | 1.31 | $1.27 billion | $9.00 | 4.06 |
Rogers Communication has higher revenue and earnings than Lumen Technologies. Lumen Technologies is trading at a lower price-to-earnings ratio than Rogers Communication, indicating that it is currently the more affordable of the two stocks.
Summary
Rogers Communication beats Lumen Technologies on 12 of the 14 factors compared between the two stocks.
About Lumen Technologies
Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, unified communications and collaboration, and optical wavelengths services; ethernet and VPN data networks services; and legacy services to manage cash flow, including time division multiplexing voice, private line, and other legacy services, as well as sells communication equipment, and IT solutions. The company also provides high speed and lower speed broadband service to residential and small business customers; local and long-distance voice services, professional services, and other ancillary services; and federal broadband and state support programs. It serves its products and services under the Lumen, Quantum Fiber, and CenturyLink brands. The company was formerly known as CenturyLink, Inc. and changed its name to Lumen Technologies, Inc. in September 2020. Lumen Technologies, Inc. was incorporated in 1968 and is headquartered in Monroe, Louisiana.
About Rogers Communication
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 financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and express pickup services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and monitoring, security, automation, energy efficiency, and smart control through 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; and 4K television programming. Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; voice, data networking, Internet protocol (IP), and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices, as well as operates Ignite TV and Ignite TV app. Additionally, the company 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 52 AM and FM radio stations. It also offers Rogers and the Rogers World Elite Mastercard. The company was founded in 1960 and is headquartered in Toronto, Canada.
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