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 $147.0B against $37.0B — 4.0× the size. AT&T Inc. trades at the lower P/E: 11.8× against 32.5×. AT&T Inc. grew revenue faster over the last twelve months: 3.51% against −7.42%. Vodafone Group PLC has the higher net margin (14.2% vs 10.1%) and the lower return on invested capital (0.00% vs 5.43%). Both pay a dividend; AT&T Inc. yields more (5.09% vs 3.41%). Across the 19 metrics below, AT&T Inc. leads on 12 and Vodafone Group PLC on 7.

Valuation

Metric T VOD Telecom Services median
P/E 11.78 32.45 12.29
P/S 1.16 n/m 0.94
P/B 1.21 n/m 1.25
Price to free cash flow 8.36 n/m 8.15
EV/EBITDA 6.83 1.09 7.05
EV/Sales 2.31 0.45 1.79
Earnings yield 8.49% 3.08% 3.40%
Free cash flow yield 11.96% 0.00% 4.48%

Profitability

Metric T VOD Telecom Services median
Gross margin 59.74% 32.12% 48.78%
Operating margin 18.30% 0.00% 9.22%
Net margin 10.08% 14.24% 6.67%
Free cash flow margin 13.83% 0.00% 2.87%
Return on equity 10.41% 0.00% 6.00%
Return on assets 2.99% 0.00% 1.50%
Return on invested capital 5.43% 0.00% 3.77%

Growth

Metric T VOD Telecom Services median
Revenue growth (TTM) 3.51% (7.42%) 5.40%
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 1.30 0.97 0.57
Current ratio 0.87 1.14 1.09
Net debt to EBITDA 2.62 2.41 1.86

Dividend

Metric T VOD Telecom Services median
Dividend yield 5.09% 3.41% 2.55%
Payout ratio 0.60 — 0.40

Size

Metric T VOD Telecom Services median
Market cap 146.99b 36.95b 3.16b

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