Vodafone Idea vs Vodafone Which Is a Better Investment?

Vodafone Idea and Vodafone stocks belong to the same parent company, Vodafone Group. While Vodafone Idea is a telecommunications company based in India, Vodafone stocks represent ownership in the broader Vodafone Group, a multinational telecommunications conglomerate headquartered in the UK. Both entities have faced significant challenges in recent years, with Vodafone Idea struggling financially in the competitive Indian market and Vodafone stocks reflecting these difficulties in their performance. Investors must carefully evaluate the risks and potential rewards of investing in either entity.

Vodafone Idea or Vodafone?

When comparing Vodafone Idea 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 Vodafone Idea 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. Vodafone Idea has a dividend yield of -%, while Vodafone has a dividend yield of 9.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Vodafone Idea reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Vodafone Idea P/E ratio at -1.66 and Vodafone's P/E ratio at 241.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Vodafone Idea P/B ratio is -0.54 while Vodafone's P/B ratio is 3.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Vodafone Idea has seen a 5-year revenue growth of -0.32%, while Vodafone's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vodafone Idea's ROE at 31.09% and Vodafone's ROE at 1.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹7.72 for Vodafone Idea and $9.26 for Vodafone. Over the past year, Vodafone Idea's prices ranged from ₹7.58 to ₹19.18, with a yearly change of 153.03%. 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.