Comprehensive Stock Comparison
Compare Telefónica, S.A. (TEF) vs Vodafone Group Public Limited Company (VOD) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | VOD | 2.0% revenue growth vs TEF's 1.6% |
| Value | TEF | Lower P/E (12.8x vs 16.4x) |
| Quality / Margins | VOD | -4.1% net margin vs TEF's -5.5% |
| Stability / Safety | TEF | Beta 0.11 vs VOD's 0.36 |
| Dividends | TEF | 8.5% yield, vs VOD's 5.2% |
| Momentum (1Y) | VOD | +80.1% vs TEF's +5.3% |
| Efficiency (ROA) | VOD | -2.2% ROA vs TEF's -2.3%, ROIC -0.3% vs 2.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Telefónica is a multinational telecommunications company providing mobile, fixed-line, and broadband services across Europe and Latin America. It generates revenue primarily from mobile services (~50% of total), fixed-line telephony (~25%), and broadband/data services (~20%), with the remainder from wholesale and enterprise solutions. The company's moat lies in its extensive physical infrastructure—including fiber networks and mobile towers—and its established market positions in key Spanish-speaking regions.
Vodafone is a multinational telecommunications company providing mobile, fixed-line, and converged connectivity services across Europe and Africa. It generates revenue primarily from mobile services (~60% of service revenue), fixed broadband and TV, and its African mobile money platform M-Pesa — which has become a significant growth driver. The company's competitive advantage lies in its extensive European network infrastructure and its entrenched position in African markets where M-Pesa has created a powerful financial services ecosystem.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TEF leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). VOD leads in 2 (Financial Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
VOD is the larger business by revenue, generating $74.2B annually — 1.9x TEF's $38.3B. Profitability is closely matched — net margins range from -4.1% (VOD) to -5.5% (TEF). On growth, VOD holds the edge at +29.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| RevenueTrailing 12 months | $38.3B | $74.2B |
| EBITDAEarnings before interest/tax | $12.3B | $21.2B |
| Net IncomeAfter-tax profit | -$2.1B | -$3.0B |
| Free Cash FlowCash after capex | $4.0B | $21.9B |
| Gross MarginGross profit ÷ Revenue | +83.7% | +33.4% |
| Operating MarginEBIT ÷ Revenue | +6.9% | +4.4% |
| Net MarginNet income ÷ Revenue | -5.5% | -4.1% |
| FCF MarginFCF ÷ Revenue | +10.5% | +29.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -6.6% | +29.7% |
| EPS Growth (YoY)Latest quarter vs prior year | — | -4.6% |
Valuation Metrics
On an enterprise value basis, TEF's 5.2x EV/EBITDA is more attractive than VOD's 7.3x.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| Market CapShares × price | $24.4B | $35.8B |
| Enterprise ValueMkt cap + debt − cash | $68.0B | $89.5B |
| Trailing P/EPrice ÷ TTM EPS | -65.09x | -8.14x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.75x | 16.41x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.15x | 7.30x |
| Price / SalesMarket cap ÷ Revenue | 0.50x | 0.81x |
| Price / BookPrice ÷ Book value/share | 0.91x | 0.59x |
| Price / FCFMarket cap ÷ FCF | 3.98x | 3.50x |
Profitability & Efficiency
VOD delivers a -5.2% return on equity — every $100 of shareholder capital generates $-5 in annual profit, vs $-10 for TEF. VOD carries lower financial leverage with a 0.99x debt-to-equity ratio, signaling a more conservative balance sheet compared to TEF's 1.98x. On the Piotroski fundamental quality scale (0–9), TEF scores 6/9 vs VOD's 5/9, reflecting solid financial health.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| ROE (TTM)Return on equity | -9.9% | -5.2% |
| ROA (TTM)Return on assets | -2.3% | -2.2% |
| ROICReturn on invested capital | +2.9% | -0.3% |
| ROCEReturn on capital employed | +3.1% | -0.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 1.98x | 0.99x |
| Net DebtTotal debt minus cash | $37.0B | $45.5B |
| Cash & Equiv.Liquid assets | $8.1B | $11.9B |
| Total DebtShort + long-term debt | $45.0B | $57.4B |
| Interest CoverageEBIT ÷ Interest expense | 0.80x | -0.18x |
Total Returns (with DRIP)
A $10,000 investment in TEF five years ago would be worth $13,474 today (with dividends reinvested), compared to $11,207 for VOD. Over the past 12 months, VOD leads with a +80.1% total return vs TEF's +5.3%. The 3-year compound annual growth rate (CAGR) favors VOD at 13.6% vs TEF's 8.9% — a key indicator of consistent wealth creation.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| YTD ReturnYear-to-date | +8.3% | +15.1% |
| 1-Year ReturnPast 12 months | +5.3% | +80.1% |
| 3-Year ReturnCumulative with dividends | +29.0% | +46.6% |
| 5-Year ReturnCumulative with dividends | +34.7% | +12.1% |
| 10-Year ReturnCumulative with dividends | -13.3% | -12.4% |
| CAGR (3Y)Annualised 3-year return | +8.9% | +13.6% |
Risk & Volatility
TEF is the less volatile stock with a 0.11 beta — it tends to amplify market swings less than VOD's 0.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VOD currently trades 96.5% from its 52-week high vs TEF's 75.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.11x | 0.36x |
| 52-Week HighHighest price in past year | $5.72 | $15.91 |
| 52-Week LowLowest price in past year | $3.67 | $8.05 |
| % of 52W HighCurrent price vs 52-week peak | +75.7% | +96.5% |
| RSI (14)Momentum oscillator 0–100 | 70.2 | 56.4 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 4.0M |
Analyst Outlook
Wall Street rates TEF as "Buy" and VOD as "Buy". For income investors, TEF offers the higher dividend yield at 8.50% vs VOD's 5.24%.
| Metric | TEFTelefónica, S.A. | VODVodafone Group Pu… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | — | $11.58 |
| # AnalystsCovering analysts | 20 | 25 |
| Dividend YieldAnnual dividend ÷ price | +8.5% | +5.2% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $0.31 | $0.68 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +6.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 100 | 66.89 | -33.1% |
| Vodafone Group Publ… (VOD) | 100 | 85.89 | -14.1% |
Telefónica, S.A. (TEF) returned +35% over 5 years vs Vodafone Group Publ… (VOD)'s +12%. A $10,000 investment in TEF 5 years ago would be worth $13,474 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | $52.0B | $41.3B | -20.6% |
| Vodafone Group Publ… (VOD) | $52.0B | $37.4B | -27.9% |
Vodafone Group Public Limited Company's revenue grew from $52.0B (2016) to $37.4B (2025) — a -3.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 4.6% | -0.1% | -102.6% |
| Vodafone Group Publ… (VOD) | -9.8% | -11.1% | -13.4% |
Vodafone Group Public Limited Company's net margin went from -10% (2016) to -11% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 17.3 | 11.5 | -33.5% |
| Vodafone Group Publ… (VOD) | 12.1 | 20.2 | +66.9% |
Telefónica, S.A. has traded in a 3x–22x P/E range over 6 years; current trailing P/E is ~-65x. Vodafone Group Public Limited Company has traded in a 2x–20x P/E range over 4 years; current trailing P/E is ~-8x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 0.42 | -0.06 | -113.4% |
| Vodafone Group Publ… (VOD) | -1.9 | -1.6 | +15.8% |
Vodafone Group Public Limited Company's EPS grew from $-1.90 (2016) to $-1.60 (2025).
Chart 6Free Cash Flow — 5 Years
Telefónica, S.A. generated $5B FCF in 2024 (+24% vs 2021). Vodafone Group Public Limited Company generated $9B FCF in 2025 (+9% vs 2021).
TEF vs VOD: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is TEF or VOD a better buy right now?
Analysts rate Telefónica, S.A. (TEF) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — TEF or VOD?
Over the past 5 years, Telefónica, S.A. (TEF) delivered a total return of +34.7%, compared to +12.1% for Vodafone Group Public Limited Company (VOD). A $10,000 investment in TEF five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: VOD returned -12.4% versus TEF's -13.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — TEF or VOD?
By beta (market sensitivity over 5 years), Telefónica, S.A. (TEF) is the lower-risk stock at 0.11β versus Vodafone Group Public Limited Company's 0.36β — meaning VOD is approximately 229% more volatile than TEF relative to the S&P 500. On balance sheet safety, Vodafone Group Public Limited Company (VOD) carries a lower debt/equity ratio of 99% versus 198% for Telefónica, S.A. — giving it more financial flexibility in a downturn.
04Which has better profit margins — TEF or VOD?
Telefónica, S.A. (TEF) is the more profitable company, earning -0.1% net margin versus -11.1% for Vodafone Group Public Limited Company — meaning it keeps -0.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TEF leads at 5.8% versus -1.1% for VOD. At the gross margin level — before operating expenses — TEF leads at 69.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is TEF or VOD more undervalued right now?
On forward earnings alone, Telefónica, S.A. (TEF) trades at 12.8x forward P/E versus 16.4x for Vodafone Group Public Limited Company — 3.7x cheaper on a one-year earnings basis.
06Which pays a better dividend — TEF or VOD?
All stocks in this comparison pay dividends. Telefónica, S.A. (TEF) offers the highest yield at 8.5%, versus 5.2% for Vodafone Group Public Limited Company (VOD).
07Is TEF or VOD better for a retirement portfolio?
For long-horizon retirement investors, Telefónica, S.A. (TEF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.11), 8.5% yield). Both have compounded well over 10 years (TEF: -13.3%, VOD: -12.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between TEF and VOD?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Communication Services
- Market Cap > $100B
- Gross Margin > 50%
- Dividend Yield > 3.3%
- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 14%
- Gross Margin > 20%