Vodafone Group PLC (NASDAQ: VOD) and TIM Participacoes (NYSE:TSU) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitabiliy.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vodafone Group PLC and TIM Participacoes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vodafone Group PLC 1 5 7 1 2.57
TIM Participacoes 1 1 5 0 2.57

Vodafone Group PLC currently has a consensus target price of $31.00, indicating a potential upside of 6.38%. TIM Participacoes has a consensus target price of $16.80, indicating a potential upside of 4.93%. Given Vodafone Group PLC’s higher possible upside, equities analysts clearly believe Vodafone Group PLC is more favorable than TIM Participacoes.

Valuation and Earnings

This table compares Vodafone Group PLC and TIM Participacoes’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vodafone Group PLC N/A N/A N/A N/A N/A
TIM Participacoes $4.75 billion 1.63 $1.19 billion $0.47 34.06

TIM Participacoes has higher revenue and earnings than Vodafone Group PLC.

Volatility & Risk

Vodafone Group PLC has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, TIM Participacoes has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Dividends

Vodafone Group PLC pays an annual dividend of $1.59 per share and has a dividend yield of 5.5%. TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. TIM Participacoes pays out 14.9% of its earnings in the form of a dividend. TIM Participacoes has raised its dividend for 4 consecutive years.

Institutional and Insider Ownership

10.5% of Vodafone Group PLC shares are held by institutional investors. Comparatively, 19.3% of TIM Participacoes shares are held by institutional investors. 1.0% of Vodafone Group PLC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Vodafone Group PLC and TIM Participacoes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vodafone Group PLC N/A N/A N/A
TIM Participacoes 4.32% 4.47% 2.29%

Summary

TIM Participacoes beats Vodafone Group PLC on 7 of the 13 factors compared between the two stocks.

Vodafone Group PLC Company Profile

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.

TIM Participacoes Company Profile

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

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