Vodafone vs China Mobile Which Is Stronger?

Vodafone Group plc and China Mobile Limited are two major telecommunications companies that operate on an international scale. Vodafone is a British multinational firm with a strong presence in Europe, Africa, and Asia, while China Mobile is the leading mobile service provider in China. Both companies are listed on major stock exchanges and attract investors looking to capitalize on the growing demand for telecommunications services worldwide. In this comparison, we will analyze the performance and potential of Vodafone vs China Mobile stocks.

Vodafone or China Mobile?

When comparing Vodafone and China Mobile, 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 and China Mobile.

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 has a dividend yield of 7.34%, while China Mobile has a dividend yield of 7.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Vodafone reports a 5-year dividend growth of -11.34% year and a payout ratio of 310.07%. On the other hand, China Mobile reports a 5-year dividend growth of 6.32% year and a payout ratio of 69.76%.

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 P/E ratio at 239.93 and China Mobile's P/E ratio at 10.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Vodafone P/B ratio is 3.92 while China Mobile's P/B ratio is 1.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Vodafone has seen a 5-year revenue growth of -0.02%, while China Mobile's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vodafone's ROE at 1.63% and China Mobile's ROE at 10.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.08 for Vodafone and €8.56 for China Mobile. Over the past year, Vodafone's prices ranged from $8.02 to $10.39, with a yearly change of 29.55%. China Mobile's prices fluctuated between €7.09 and €9.40, with a yearly change of 32.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.