Bharti Airtel vs Vodafone Idea Which Performs Better?

Bharti Airtel and Vodafone Idea are two major players in the Indian telecommunications industry, both competing fiercely for market share and dominance. As telecom giants, their stocks are closely watched by investors looking to capitalize on the growing demand for communication services in India. Bharti Airtel has a strong financial performance and a solid market presence, while Vodafone Idea has been facing challenges due to intense competition and regulatory issues. Both stocks offer unique investment opportunities for those looking to gain exposure to the burgeoning Indian telecom sector.

Bharti Airtel or Vodafone Idea?

When comparing Bharti Airtel and Vodafone Idea, 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 Bharti Airtel and Vodafone Idea.

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. Bharti Airtel has a dividend yield of 0.68%, while Vodafone Idea has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bharti Airtel reports a 5-year dividend growth of 0.00% year and a payout ratio of 55.39%. On the other hand, Vodafone Idea reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Bharti Airtel P/E ratio at 73.61 and Vodafone Idea's P/E ratio at -1.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bharti Airtel P/B ratio is 10.37 while Vodafone Idea's P/B ratio is -0.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bharti Airtel has seen a 5-year revenue growth of 0.84%, while Vodafone Idea's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bharti Airtel's ROE at 14.58% and Vodafone Idea's ROE at 31.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1551.80 for Bharti Airtel and ₹7.72 for Vodafone Idea. Over the past year, Bharti Airtel's prices ranged from ₹933.80 to ₹1779.00, with a yearly change of 90.51%. Vodafone Idea's prices fluctuated between ₹7.58 and ₹19.18, with a yearly change of 153.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.