BCE (NYSE:BCE) & Quebecor (OTCMKTS:QBCRF) Head-To-Head Review

Quebecor (OTCMKTS:QBCRF) and BCE (NYSE:BCE) are both large-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Quebecor and BCE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quebecor	$4.06 billion	2.49	$612.64 million	$1.46	30.98
BCE	$17.51 billion	1.24	$4.62 billion	$4.89	4.77

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

Dividends

Quebecor pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. BCE pays an annual dividend of $1.27 per share and has a dividend yield of 5.4%. Quebecor pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE pays out 26.0% of its earnings in the form of a dividend. BCE is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quebecor	16.30%	34.04%	7.19%
BCE	25.49%	12.90%	3.25%

Institutional and Insider Ownership

41.5% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Quebecor and BCE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quebecor	0	3	3	0	2.50
BCE	0	5	6	0	2.55

BCE has a consensus target price of $29.25, suggesting a potential upside of 25.29%. Given BCE’s stronger consensus rating and higher possible upside, analysts clearly believe BCE is more favorable than Quebecor.

Summary

BCE beats Quebecor on 11 of the 15 factors compared between the two stocks.

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.

About BCE

BCE Inc., a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services from or to resellers and other carriers; and operates consumer electronics retail stores. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.