Tele2 vs Vodafone

Tele2 and Vodafone are two major players in the telecommunications industry, known for their extensive networks and range of services. Both companies have a strong presence in Europe and beyond, offering a variety of mobile, fixed-line, and internet services to consumers and businesses. Investors looking to capitalize on the growth potential of the telecommunications sector may consider comparing the financial performance and market positioning of Tele2 and Vodafone stocks to make informed investment decisions.

Tele2 or Vodafone?

When comparing Tele2 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 Tele2 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. Tele2 has a dividend yield of 19.04%, while Vodafone has a dividend yield of 9.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tele2 reports a 5-year dividend growth of 0.00% year and a payout ratio of 125.07%. On the other hand, Vodafone reports a 5-year dividend growth of -11.34% year and a payout ratio of 310.07%.

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 Tele2 P/E ratio at 10.41 and Vodafone's P/E ratio at 244.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tele2 P/B ratio is 1.98 while Vodafone's P/B ratio is 4.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tele2 has seen a 5-year revenue growth of 0.89%, while Vodafone's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tele2's ROE at 17.10% and Vodafone's ROE at 1.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.47 for Tele2 and $9.64 for Vodafone. Over the past year, Tele2's prices ranged from $3.36 to $5.78, with a yearly change of 72.11%. 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.