Critical Analysis: Vodafone Group (VOD) and The Competition
Vodafone Group (NASDAQ: VOD) is one of 34 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it compare to its peers? We will compare Vodafone Group to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Risk & Volatility
Vodafone Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Vodafone Group’s peers have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.
This table compares Vodafone Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vodafone Group Competitors||-315.11%||-5.32%||-10.34%|
Earnings & Valuation
This table compares Vodafone Group and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Vodafone Group||$52.29 billion||-$6.91 billion||N/A|
|Vodafone Group Competitors||$27.09 billion||$1.51 billion||-214.11|
Vodafone Group has higher revenue, but lower earnings than its peers.
Institutional & Insider Ownership
10.2% of Vodafone Group shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 1.0% of Vodafone Group shares are owned by company insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies 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.
Vodafone Group pays an annual dividend of $1.15 per share and has a dividend yield of 3.7%. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.2% and pay out 62.5% of their earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Vodafone Group and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vodafone Group Competitors||524||1703||1880||64||2.36|
Vodafone Group presently has a consensus price target of $31.52, indicating a potential upside of 1.45%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 50.89%. Given Vodafone Group’s peers higher possible upside, analysts clearly believe Vodafone Group has less favorable growth aspects than its peers.
Vodafone Group beats its peers on 8 of the 14 factors compared.
About Vodafone Group
Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.
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