Orange (ORANY) vs Telefonica Brasil S.A. (VIV)

Orange and Telefonica Brasil S.A. are both Telecom Services companies. Orange is the larger, with a market value of $29.8B against $18.7B — 1.6× the size. Orange trades at the lower P/E: 6.7× against 23.3×. Telefonica Brasil S.A. grew revenue faster over the last twelve months: 16.4% against −5.31%. Telefonica Brasil S.A. has the higher net margin (10.6% vs 6.83%) and the higher return on invested capital (8.17% vs 0.00%). Both pay a dividend; Orange yields more (6.81% vs 5.77%). Across the 20 metrics below, Telefonica Brasil S.A. leads on 15 and Orange on 5.

Valuation

Metric ORANY VIV Telecom Services median
P/E 6.69 23.26 13.27
P/S n/m 3.17 0.95
P/B n/m 2.85 1.47
Price to free cash flow n/m 16.61 8.72
EV/EBITDA 1.51 7.99 6.85
EV/Sales 0.45 3.36 1.87
Earnings yield 14.95% 4.30% 1.66%
Free cash flow yield 0.00% 6.02% 5.53%

Profitability

Metric ORANY VIV Telecom Services median
Gross margin 16.31% 45.03% 51.26%
Operating margin 0.00% 17.00% 7.62%
Net margin 6.83% 10.59% 4.22%
Free cash flow margin 0.00% 19.09% 4.73%
Return on equity 0.00% 9.89% 5.80%
Return on assets 0.00% 5.17% 0.00%
Return on invested capital 0.00% 8.17% 3.41%

Growth

Metric ORANY VIV Telecom Services median
Revenue growth (TTM) (5.31%) 16.40% 3.31%
EPS growth (last fiscal year) (82.02%) (45.52%) —
Revenue growth, 5-year CAGR (1.09%) 4.99% 1.50%
Net income growth, 5-year CAGR (35.63%) 3.60% 0.00%

Health

Metric ORANY VIV Telecom Services median
Debt to equity 1.36 0.30 0.63
Current ratio 0.87 0.95 1.13
Net debt to EBITDA 1.92 0.53 1.86

Dividend

Metric ORANY VIV Telecom Services median
Dividend yield 6.81% 5.77% 4.06%
Payout ratio 1.15 0.83 0.00

Size

Metric ORANY VIV Telecom Services median
Market cap 29.75b 18.68b 3.06b

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