Ooredoo vs Vodafone Which Is More Favorable?

Ooredoo and Vodafone are two major telecommunications companies that have been competing in the stock market for years. Both companies operate in multiple countries across the globe and offer a range of services, from mobile phone plans to internet and television packages. Investors interested in telecommunications stocks may want to compare the performance of these two industry giants to determine which offers the best investment opportunity. By analyzing factors such as revenue, market share, and growth potential, investors can make informed decisions about whether to invest in Ooredoo or Vodafone stocks.

Ooredoo or Vodafone?

When comparing Ooredoo and Vodafone, 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 Ooredoo and Vodafone.

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. Ooredoo has a dividend yield of 4.69%, while Vodafone has a dividend yield of 7.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ooredoo reports a 5-year dividend growth of -58.52% year and a payout ratio of 53.80%. On the other hand, Vodafone reports a 5-year dividend growth of -11.34% year and a payout ratio of 337.19%.

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 Ooredoo P/E ratio at 11.46 and Vodafone's P/E ratio at 313.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ooredoo P/B ratio is 1.32 while Vodafone's P/B ratio is 3.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ooredoo has seen a 5-year revenue growth of -0.23%, while Vodafone's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ooredoo's ROE at 12.25% and Vodafone's ROE at 1.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ر.ق11.68 for Ooredoo and $8.66 for Vodafone. Over the past year, Ooredoo's prices ranged from ر.ق9.11 to ر.ق11.99, with a yearly change of 31.69%. Vodafone's prices fluctuated between $8.02 and $10.39, with a yearly change of 29.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.