TEF vs VOD

For growth investors, Vodafone Group Public Limited Company (VOD) is the stronger pick with 2.

0% revenue growth year-over-year, versus 1. 6% for Telefónica, S. A. (TEF). 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.

Over the past 5 years, Telefónica, S.

A. (TEF) delivered a total return of +26. 4%, compared to +1. 0% for Vodafone Group Public Limited Company (VOD). Over 10 years, the gap is even starker: VOD returned -15. 0% versus TEF's -16. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Telefónica, S.

A. (TEF) is the lower-risk stock at 0. 16β versus Vodafone Group Public Limited Company's 0. 36β — meaning VOD is approximately 126% 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.

By revenue growth (latest reported year), Vodafone Group Public Limited Company (VOD) is pulling ahead at 2.

0% versus 1. 6% for Telefónica, S. A. (TEF). On earnings-per-share growth, the picture is similar: Telefónica, S. A. grew EPS 71. 8% year-over-year, compared to -481. 0% for Vodafone Group Public Limited Company. Over a 3-year CAGR, TEF leads at 1. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

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.

On forward earnings alone, Telefónica, S.

A. (TEF) trades at 12. 5x forward P/E versus 17. 9x for Vodafone Group Public Limited Company — 5. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Telefónica, S. A. (TEF) offers the highest yield at 8. 5%, versus 5. 1% for Vodafone Group Public Limited Company (VOD).

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. 16), 8. 5% yield). Both have compounded well over 10 years (TEF: -16. 8%, VOD: -15. 0%), 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.

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.