Vodafone vs Vodacom Which Is More Attractive?

Vodafone Group and Vodacom Group are telecommunications giants that have a significant presence in the global market. Both companies have a strong track record of providing communication services to millions of customers worldwide. Vodafone's stock is listed on the London Stock Exchange, while Vodacom is listed on the Johannesburg Stock Exchange. Investors often compare the two stocks based on their financial performance, growth potential, and market share in various regions. In this analysis, we will explore the key differences and similarities between Vodafone and Vodacom stocks.

Vodafone or Vodacom?

When comparing Vodafone and Vodacom, 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 Vodacom.

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 7.64%, while Vodacom has a dividend yield of 1.92%. 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, Vodacom reports a 5-year dividend growth of -15.98% year and a payout ratio of 75.95%.

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 232.06 and Vodacom's P/E ratio at 12.74. 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 3.79 while Vodacom's P/B ratio is 2.24.

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 Vodacom's is -0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Vodafone's ROE at 1.63% and Vodacom's ROE at 23.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.84 for Vodafone and $5.93 for Vodacom. Over the past year, Vodafone's prices ranged from $8.02 to $10.39, with a yearly change of 29.55%. Vodacom's prices fluctuated between $4.56 and $6.77, with a yearly change of 48.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.