AT&T Inc. (T) vs Vodafone Group PLC (VOD)

AT&T Inc. and Vodafone Group PLC are both Telecom Services companies. AT&T Inc. is the larger, with a market value of $161.0B against $36.7B — 4.4× the size. AT&T Inc. trades at the lower P/E: 7.8× against 32.7×. AT&T Inc. grew revenue faster over the last twelve months: 2.63% against −7.42%. AT&T Inc. has the higher net margin (16.8% vs 14.2%) and the higher return on invested capital (6.33% vs 0.00%). Both pay a dividend; AT&T Inc. yields more (4.74% vs 3.38%). Across the 19 metrics below, AT&T Inc. leads on 13 and Vodafone Group PLC on 6.

Valuation

Metric T VOD Telecom Services median
P/E 7.76 32.72 13.80
P/S 1.28 n/m 0.83
P/B 1.29 n/m 1.35
Price to free cash flow 9.23 n/m 8.86
EV/EBITDA 6.29 1.09 6.37
EV/Sales 2.27 0.45 1.82
Earnings yield 12.88% 3.06% 2.02%
Free cash flow yield 10.84% 0.00% 5.99%

Profitability

Metric T VOD Telecom Services median
Gross margin 59.72% 32.12% 51.26%
Operating margin 20.12% 0.00% 7.62%
Net margin 16.83% 14.24% 4.22%
Free cash flow margin 13.85% 0.00% 4.98%
Return on equity 17.28% 0.00% 5.80%
Return on assets 5.14% 0.00% 0.00%
Return on invested capital 6.33% 0.00% 3.41%

Growth

Metric T VOD Telecom Services median
Revenue growth (TTM) 2.63% (7.42%) 3.31%
EPS growth (last fiscal year) 104.03% 88.69% 0.62%
Revenue growth, 5-year CAGR (2.56%) (1.72%) 2.53%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric T VOD Telecom Services median
Debt to equity 1.14 0.97 0.63
Current ratio 0.97 1.14 1.13
Net debt to EBITDA 2.62 2.41 1.86

Dividend

Metric T VOD Telecom Services median
Dividend yield 4.74% 3.38% 2.72%
Payout ratio 0.37 — 0.43

Size

Metric T VOD Telecom Services median
Market cap 161.03b 36.72b 2.77b

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