Vodafone Group (NASDAQ:VOD – Get Free Report) and KDDI (OTCMKTS:KDDIY – Get Free Report) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Dividends
Vodafone Group pays an annual dividend of $0.47 per share and has a dividend yield of 4.2%. KDDI pays an annual dividend of $0.35 per share and has a dividend yield of 2.1%. Vodafone Group pays out 41.2% of its earnings in the form of a dividend. KDDI pays out 34.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk and Volatility
Vodafone Group has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, KDDI has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vodafone Group | 1 | 5 | 1 | 0 | 2.00 |
| KDDI | 0 | 0 | 0 | 1 | 4.00 |
Earnings and Valuation
This table compares Vodafone Group and KDDI”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vodafone Group | $39.39 billion | 0.74 | -$4.48 billion | $1.14 | 9.70 |
| KDDI | $38.86 billion | 1.77 | $4.53 billion | $1.01 | 16.30 |
KDDI has lower revenue, but higher earnings than Vodafone Group. Vodafone Group is trading at a lower price-to-earnings ratio than KDDI, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
7.8% of Vodafone Group shares are owned by institutional investors. Comparatively, 0.1% of KDDI shares are owned by institutional investors. 1.0% of Vodafone Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Vodafone Group and KDDI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vodafone Group | N/A | N/A | N/A |
| KDDI | 10.71% | 10.87% | 4.03% |
Summary
KDDI beats Vodafone Group on 9 of the 16 factors compared between the two stocks.
About Vodafone Group
Vodafone Group Public Limited Company provides telecommunication services in Europe and internationally. It offers mobile connectivity services comprising end-to-end services for mobile voice and data, messaging, device management, BYOx, and telecoms management, as well as professional and consulting services; and fixed line connectivity, such as fixed voice and data, broadband, software-defined networks, managed WAN, LAN, ethernet, and satellite; and financial services, as well as business and merchant services. The company also provides consumer Internet of Things (IoT) propositions, as well as security and insurance products; mobile services; logistics, fleet management, and smart metering services; WiFi; digital services comprising mobile application development, multi-access edge computing, worker insights, AI assistant, drone detection, visual inspection, and mixed reality, as well as Vodafone Analytics platform; and traditional IT hosting services, including colocation, managed hosting, security, hosting infrastructure, and flexible computing for government. In addition, it offers integrated business communication services, as well as fixed mobile convergence services; and carrier services, as well as IoT devices comprising managed tablets and integrated terminals. Further, it offers M-Pesa, an African mobile money platform to make payments and provide financial services; Vodafone Business multi-cloud platform; and productivity solutions, as well as operates digital cloud-based television platforms. It serves private and public sector customers in the manufacturing, retail, automotive, banking finance, healthcare, smart cities and public, agriculture, transport and logistics, and energy and utilities management industries. It offers its products and services through digital and physical channels. Vodafone Group Public Limited Company has a strategic partnership with Open Fiber. The company was incorporated in 1984 and is based in Newbury, the United Kingdom.
About KDDI
KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.
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