Shaw Communications (SJR) and NeuLion (NEUL) Critical Contrast

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

Profitability

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

Net Margins Return on Equity Return on Assets
Shaw Communications 8.42% 12.42% 5.02%
NeuLion N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Shaw Communications and NeuLion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 0 2 4 0 2.67
NeuLion 0 0 0 0 N/A

Shaw Communications currently has a consensus price target of $29.00, suggesting a potential upside of 40.57%.

Insider and Institutional Ownership

52.0% of Shaw Communications shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Comparatively, 73.2% of NeuLion shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Shaw Communications and NeuLion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shaw Communications $4.01 billion 2.62 $46.98 million $1.18 17.48
NeuLion $95.57 million 0.00 -$31.31 million N/A N/A

Shaw Communications has higher revenue and earnings than NeuLion.

Dividends

Shaw Communications pays an annual dividend of $0.90 per share and has a dividend yield of 4.4%. NeuLion does not pay a dividend. Shaw Communications pays out 76.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shaw Communications has raised its dividend for 2 consecutive years.

Summary

Shaw Communications beats NeuLion on 9 of the 11 factors compared between the two stocks.

About Shaw Communications

Shaw Communications Inc. operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides broadband Internet, Shaw Go WiFi, video, and digital phone services to residential customers; and Internet, data, WiFi, digital phone, and video services to business customers. The Wireless segment provides wireless voice and data communications services for customers. The company was formerly known as Shaw Cable systems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was founded in 1966 and is based in Calgary, Canada.

About NeuLion

NeuLion, Inc. provides enterprise digital video solutions in the United States and internationally. Its flagship solution, the NeuLion Digital Platform, is a proprietary cloud-based turnkey solution that enables the delivery and monetization of digital video content. The NeuLion Digital Platform provides content owners and rights holders with an end-to-end turnkey video distribution platform that enables them to ingest, encode, manage, deliver, monetize, and analyze the performance of their live and on-demand digital video content. It also provides NeuLion consumer electronics (CE) technologies, which allow CE manufacturers to provide a secure, high quality video experience with premium screen resolution, up to Ultra HD/4K, across virtually all content formats for a range of connected devices; and a library of high quality video compression-decompression programs or codecs under the MainConcept brand. It serves content owners and rights holders, such as professional and college sports, and broadcaster/operator customers; consumer electronics manufacturers; and video integrators comprising enterprise software providers. NeuLion, Inc. was incorporated in 2000 and is headquartered in Plainview, New York.

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