Vodafone Group (VOD) and Cellcom Israel (CEL) Critical Survey

Vodafone Group (NASDAQ: VOD) and Cellcom Israel (NYSE:CEL) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider and Institutional Ownership

10.9% of Vodafone Group shares are held by institutional investors. Comparatively, 7.7% of Cellcom Israel shares are held by institutional investors. 1.0% of Vodafone Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.



Dividends

Vodafone Group pays an annual dividend of $2.41 per share and has a dividend yield of 9.8%. Cellcom Israel does not pay a dividend. Vodafone Group pays out 177.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and target prices for Vodafone Group and Cellcom Israel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vodafone Group 0 1 8 1 3.00
Cellcom Israel 1 0 0 0 1.00

Vodafone Group presently has a consensus target price of $31.94, suggesting a potential upside of 29.84%. Given Vodafone Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vodafone Group is more favorable than Cellcom Israel.

Risk & Volatility

Vodafone Group has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vodafone Group and Cellcom Israel’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vodafone Group $54.48 billion 1.20 $3.24 billion $1.36 18.09
Cellcom Israel $1.12 billion 0.52 $33.00 million N/A N/A

Vodafone Group has higher revenue and earnings than Cellcom Israel.

Profitability

This table compares Vodafone Group and Cellcom Israel’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
Cellcom Israel 2.46% 6.66% 1.54%

Summary

Vodafone Group beats Cellcom Israel on 10 of the 16 factors compared between the two stocks.

About Vodafone Group

Vodafone Group Plc operates as a telecommunications company worldwide. The company offers voice, messaging, and data services across mobile and fixed networks; broadband and TV services; cloud and hosting for storing data and applications in the cloud, as well as Internet protocol-virtual private network services; roaming services; and converged communication services to small businesses and large multinational companies. It also provides M-Pesa, a mobile money service; GigaKombi; GigaTV, an advanced digital TV service; and Vodafone One, an integrated fixed, mobile, and TV service. In addition, the company offers Internet of Things to connect machines to the Internet; international voice, Internet protocol transit, and secure international lines; carrier services for other businesses to transmit information; and smartphones and tablets. The company serves 516 million mobile, 18 million fixed broadband, and 14 million TV customers. It offers its products primarily through approximately 7,000 own-branded and franchised stores, and indirect partners, as well as through online sales and telesales. Vodafone Group Plc has a strategic alliance with SoftBank Corp. for commercial and operational support to multinational enterprise customers operating in Japan. The company was founded in 1984 and is based in Newbury, the United Kingdom.

About Cellcom Israel

Cellcom Israel Ltd. provides cellular and landline telecommunications services in Israel. It operates through two segments, Cellular and Fixed-line. The company offers basic cellular telephony services, such as voice mail, cellular fax, call waiting, call forwarding, caller identification, conference calling, and inbound and outbound roaming services; and data transfer, and upload and download services. It also provides value-added services comprising SMS and MMS services; cloud backup and content services, including Cellcom Volume music application and Cellcom TV application; text and multimedia messaging services; and advanced cellular content services. In addition, the company sells handsets, modems, tablets, and laptops, as well as offers repair services. Further, it provides transmission and data services through fiber-optic infrastructure and complementary microwave links to selected business customers and telecommunications operators. Additionally, the company offers Internet infrastructure and connectivity, international calling, landline telephony, operator, teleconferencing, and international long distance services. As of December 31, 2017, it had approximately 10.6 million cellular subscribers. Cellcom Israel Ltd. was founded in 1994 and is headquartered in Netanya, Israel.

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