IDT Corporation (IDT) & Shaw Communications (NYSE:SJR) Head-To-Head Comparison

Shaw Communications (NYSE: SJR) and IDT Corporation (NYSE:IDT) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Insider and Institutional Ownership

51.8% of Shaw Communications shares are held by institutional investors. Comparatively, 52.0% of IDT Corporation shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Comparatively, 12.8% of IDT Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Shaw Communications and IDT Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shaw Communications 10.01% 9.31% 3.57%
IDT Corporation 0.55% 14.44% 4.56%

Risk & Volatility

Shaw Communications has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, IDT Corporation has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Dividends

Shaw Communications pays an annual dividend of $0.95 per share and has a dividend yield of 4.3%. IDT Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 5.6%. Shaw Communications pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDT Corporation pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations for Shaw Communications and IDT Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 1 4 2 0 2.14
IDT Corporation 0 0 0 0 N/A

Shaw Communications presently has a consensus target price of $27.33, suggesting a potential upside of 24.30%. Given Shaw Communications’ higher possible upside, equities analysts plainly believe Shaw Communications is more favorable than IDT Corporation.

Earnings & Valuation

This table compares Shaw Communications and IDT Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shaw Communications $4.31 billion 2.52 $1.72 billion $0.80 27.49
IDT Corporation $1.50 billion 0.22 $27.32 million $0.38 35.58

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

Summary

Shaw Communications beats IDT Corporation on 9 of the 15 factors compared between the two stocks.

About Shaw Communications

Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.

About IDT Corporation

IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.

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