Vodafone vs Ooredoo Which Should You Buy?

Vodafone and Ooredoo are two leading telecommunications companies with global presence, offering a range of services including mobile, broadband, and digital solutions. Both companies are publicly traded on the stock market, making them popular choices for investors looking to capitalize on the growing telecommunications industry. Vodafone, headquartered in the UK, has a larger market capitalization and revenue compared to Ooredoo, which is based in Qatar. Investors often compare the performance of these two stocks to make informed investment decisions in the telecom sector.

Vodafone or Ooredoo?

When comparing Vodafone and Ooredoo, 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 Ooredoo.

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 9.56%, while Ooredoo has a dividend yield of 4.7%. 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, Ooredoo reports a 5-year dividend growth of -58.52% year and a payout ratio of 53.80%.

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 241.76 and Ooredoo's P/E ratio at 11.44. 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 3.95 while Ooredoo's P/B ratio is 1.32.

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 Ooredoo's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vodafone's ROE at 1.63% and Ooredoo's ROE at 12.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.26 for Vodafone and ر.ق11.59 for Ooredoo. Over the past year, Vodafone's prices ranged from $8.02 to $10.39, with a yearly change of 29.55%. Ooredoo's prices fluctuated between ر.ق9.11 and ر.ق11.99, with a yearly change of 31.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.