Telefonica Brasil S.A. (VIV) vs Vodafone Group PLC (VOD)

Telefonica Brasil S.A. and Vodafone Group PLC are both Telecom Services companies. Vodafone Group PLC is the larger, with a market value of $38.2B against $18.7B — 2.0× the size. Telefonica Brasil S.A. trades at the lower P/E: 23.3× against 33.8×. Telefonica Brasil S.A. grew revenue faster over the last twelve months: 16.4% against −7.42%. Vodafone Group PLC has the higher net margin (14.2% vs 10.6%) and the lower return on invested capital (0.00% vs 8.17%). Both pay a dividend; Vodafone Group PLC yields more (10.9% vs 5.77%). Across the 20 metrics below, Telefonica Brasil S.A. leads on 14 and Vodafone Group PLC on 6.

Valuation

Metric VIV VOD Telecom Services median
P/E 23.26 33.75 13.27
P/S 3.17 n/m 0.95
P/B 2.85 n/m 1.47
Price to free cash flow 16.61 n/m 8.72
EV/EBITDA 7.99 1.09 6.85
EV/Sales 3.36 0.45 1.87
Earnings yield 4.30% 2.96% 1.66%
Free cash flow yield 6.02% 0.00% 5.53%

Profitability

Metric VIV VOD Telecom Services median
Gross margin 45.03% 32.12% 51.26%
Operating margin 17.00% 0.00% 7.62%
Net margin 10.59% 14.24% 4.22%
Free cash flow margin 19.09% 0.00% 4.73%
Return on equity 9.89% 0.00% 5.80%
Return on assets 5.17% 0.00% 0.00%
Return on invested capital 8.17% 0.00% 3.41%

Growth

Metric VIV VOD Telecom Services median
Revenue growth (TTM) 16.40% (7.42%) 3.31%
EPS growth (last fiscal year) (45.52%) 88.69% —
Revenue growth, 5-year CAGR 4.99% (1.72%) 1.50%
Net income growth, 5-year CAGR 3.60% 0.00% 0.00%

Health

Metric VIV VOD Telecom Services median
Debt to equity 0.30 0.97 0.63
Current ratio 0.95 1.14 1.13
Net debt to EBITDA 0.53 2.41 1.86

Dividend

Metric VIV VOD Telecom Services median
Dividend yield 5.77% 10.90% 4.06%
Payout ratio 0.83 0.21 0.00

Size

Metric VIV VOD Telecom Services median
Market cap 18.68b 38.16b 3.06b

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