TIM (NYSE:TIMB) and Vodafone Group (NASDAQ:VOD) Financial Contrast

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

Institutional and Insider Ownership

7.8% of Vodafone Group shares are held by institutional investors. 1.0% of Vodafone Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Vodafone Group pays an annual dividend of $0.48 per share and has a dividend yield of 3.4%. TIM pays an annual dividend of $1.41 per share and has a dividend yield of 7.0%. TIM pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Vodafone Group and TIM’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
TIM	15.35%	15.72%	7.01%

Volatility & Risk

Vodafone Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, TIM has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares Vodafone Group and TIM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vodafone Group	$39.39 billion	0.84	-$4.48 billion	N/A	N/A
TIM	$4.72 billion	2.06	$584.73 million	$1.46	13.76

TIM has lower revenue, but higher earnings than Vodafone Group.

Analyst Recommendations

This is a breakdown of recent recommendations for Vodafone Group and TIM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vodafone Group	7	2	3	0	1.67
TIM	1	5	3	2	2.55

Vodafone Group currently has a consensus target price of $72.00, indicating a potential upside of 415.39%. TIM has a consensus target price of $23.25, indicating a potential upside of 15.70%. Given Vodafone Group’s higher probable upside, equities research analysts clearly believe Vodafone Group is more favorable than TIM.

Summary

TIM beats Vodafone Group on 9 of the 14 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 TIM

TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.