Vodafone Group PLC (VOD) vs Verizon Communications Inc. (VZ)

Vodafone Group PLC and Verizon Communications Inc. are both Telecom Services companies. Verizon Communications Inc. is the larger, with a market value of $197.0B against $38.2B — 5.2× the size. Verizon Communications Inc. trades at the lower P/E: 12.3× against 33.8×. Verizon Communications Inc. grew revenue faster over the last twelve months: 1.38% against −7.42%. Vodafone Group PLC has the higher net margin (14.2% vs 11.6%) and the lower return on invested capital (0.00% vs 6.64%). Both pay a dividend; Vodafone Group PLC yields more (10.9% vs 6.75%). Across the 20 metrics below, Verizon Communications Inc. leads on 11 and Vodafone Group PLC on 9.

Valuation

Metric VOD VZ Telecom Services median
P/E 33.75 12.26 13.27
P/S n/m 1.41 0.95
P/B n/m 1.87 1.47
Price to free cash flow n/m 9.73 8.72
EV/EBITDA 1.09 7.56 6.85
EV/Sales 0.45 2.59 1.87
Earnings yield 2.96% 8.16% 1.66%
Free cash flow yield 0.00% 10.27% 5.53%

Profitability

Metric VOD VZ Telecom Services median
Gross margin 32.12% 59.26% 51.26%
Operating margin 0.00% 20.54% 7.62%
Net margin 14.24% 11.64% 4.22%
Free cash flow margin 0.00% 14.51% 4.73%
Return on equity 0.00% 15.43% 5.80%
Return on assets 0.00% 4.08% 0.00%
Return on invested capital 0.00% 6.64% 3.41%

Growth

Metric VOD VZ Telecom Services median
Revenue growth (TTM) (7.42%) 1.38% 3.31%
EPS growth (last fiscal year) 88.69% (1.93%) —
Revenue growth, 5-year CAGR (1.72%) 1.50% 1.50%
Net income growth, 5-year CAGR 0.00% (0.71%) 0.00%

Health

Metric VOD VZ Telecom Services median
Debt to equity 0.97 1.57 0.63
Current ratio 1.14 0.60 1.13
Net debt to EBITDA 2.41 2.92 1.86

Dividend

Metric VOD VZ Telecom Services median
Dividend yield 10.90% 6.75% 4.06%
Payout ratio 0.21 0.52 0.00

Size

Metric VOD VZ Telecom Services median
Market cap 38.16b 196.96b 3.06b

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