Analyzing Vodafone Group PLC (VOD) & Telephone and Data Systems (TDS)
Vodafone Group PLC (NASDAQ: VOD) and Telephone and Data Systems (NYSE:TDS) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.7%. Telephone and Data Systems pays an annual dividend of $0.62 per share and has a dividend yield of 2.3%. Telephone and Data Systems pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vodafone Group PLC has increased its dividend for 42 consecutive years. Vodafone Group PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
10.2% of Vodafone Group PLC shares are owned by institutional investors. Comparatively, 82.5% of Telephone and Data Systems shares are owned by institutional investors. 1.0% of Vodafone Group PLC shares are owned by insiders. Comparatively, 17.3% of Telephone and Data Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Vodafone Group PLC and Telephone and Data Systems’ 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|
|Telephone and Data Systems||1.09%||1.15%||0.58%|
This is a summary of recent ratings and price targets for Vodafone Group PLC and Telephone and Data Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vodafone Group PLC||1||4||6||1||2.58|
|Telephone and Data Systems||0||2||0||0||2.00|
Vodafone Group PLC currently has a consensus price target of $31.52, indicating a potential upside of 10.13%. Telephone and Data Systems has a consensus price target of $38.00, indicating a potential upside of 40.43%. Given Telephone and Data Systems’ higher possible upside, analysts plainly believe Telephone and Data Systems is more favorable than Vodafone Group PLC.
Risk & Volatility
Vodafone Group PLC has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Telephone and Data Systems has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Earnings & Valuation
This table compares Vodafone Group PLC and Telephone and Data Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vodafone Group PLC||$56.98 billion||1.34||$13.77 billion||N/A||N/A|
|Telephone and Data Systems||$5.04 billion||0.59||$934.00 million||$0.48||56.38|
Vodafone Group PLC has higher revenue and earnings than Telephone and Data Systems.
Vodafone Group PLC beats Telephone and Data Systems on 9 of the 16 factors compared between the two stocks.
About Vodafone Group PLC
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.
About Telephone and Data Systems
Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom). It operates through four business segments: U.S. Cellular, Wireline, Cable, and Hosted and Managed Services. U.S. Cellular provides service to postpaid and prepaid customers. Wireline operations provide retail telecommunications services to both residential and commercial customers. Wireline offers services, including broadband, video, voice and network access services. Cable offers broadband, video and voice services under TDS and BendBroadband brand names. It provides a range of information technology (IT) services, including colocation, and cloud and hosting solutions through its HMS business.
Receive News & Stock Ratings for Vodafone Group PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vodafone Group PLC and related stocks with our FREE daily email newsletter.