Airtel Africa vs Bharti Airtel Which Performs Better?

Airtel Africa and Bharti Airtel are two distinct entities operating within the telecommunications industry. Airtel Africa is a standalone company that focuses on providing telecommunication services in various African countries. Bharti Airtel, on the other hand, is the parent company of Airtel Africa and operates in multiple countries across Asia and Africa. Both companies have experienced fluctuations in their stock prices due to factors such as market competition, regulatory changes, and technological advancements. Investors should carefully consider these factors before investing in either Airtel Africa or Bharti Airtel stocks.

Airtel Africa or Bharti Airtel?

When comparing Airtel Africa and Bharti Airtel, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Airtel Africa and Bharti Airtel.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Airtel Africa has a dividend yield of 6.68%, while Bharti Airtel has a dividend yield of 0.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Airtel Africa reports a 5-year dividend growth of 0.00% year and a payout ratio of -294.84%. On the other hand, Bharti Airtel reports a 5-year dividend growth of 0.00% year and a payout ratio of 55.39%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Airtel Africa P/E ratio at -60.03 and Bharti Airtel's P/E ratio at 73.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Airtel Africa P/B ratio is 2.33 while Bharti Airtel's P/B ratio is 10.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Airtel Africa has seen a 5-year revenue growth of 0.75%, while Bharti Airtel's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Airtel Africa's ROE at -3.56% and Bharti Airtel's ROE at 14.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.28 for Airtel Africa and ₹1551.80 for Bharti Airtel. Over the past year, Airtel Africa's prices ranged from $1.11 to $1.71, with a yearly change of 54.05%. Bharti Airtel's prices fluctuated between ₹933.80 and ₹1779.00, with a yearly change of 90.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.