NetApp (NASDAQ:NTAP) and Vodafone Group (NASDAQ:VOD) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Volatility & Risk
NetApp has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Vodafone Group has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for NetApp and Vodafone Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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NetApp | 1 | 12 | 10 | 0 | 2.39 |
Vodafone Group | 0 | 1 | 11 | 0 | 2.92 |
NetApp presently has a consensus price target of $64.2632, suggesting a potential upside of 4.78%. Vodafone Group has a consensus price target of $16.00, suggesting a potential downside of 9.66%. Given NetApp's higher probable upside, equities research analysts plainly believe NetApp is more favorable than Vodafone Group.
Dividends
NetApp pays an annual dividend of $1.92 per share and has a dividend yield of 3.1%. Vodafone Group pays an annual dividend of $1.07 per share and has a dividend yield of 6.0%. NetApp pays out 54.4% of its earnings in the form of a dividend. Vodafone Group pays out 172.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vodafone Group has raised its dividend for 1 consecutive years. Vodafone Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
91.0% of NetApp shares are owned by institutional investors. Comparatively, 8.3% of Vodafone Group shares are owned by institutional investors. 0.4% of NetApp shares are owned by company insiders. Comparatively, 1.0% of Vodafone Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares NetApp and Vodafone Group's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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NetApp | $5.41 billion | 2.52 | $819 million | $3.53 | 17.37 |
Vodafone Group | $50.00 billion | 0.95 | $-1,023,040,000.00 | $0.62 | 28.56 |
NetApp has higher earnings, but lower revenue than Vodafone Group. NetApp is trading at a lower price-to-earnings ratio than Vodafone Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NetApp and Vodafone Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
NetApp | 12.44% | 263.77% | 9.76% |
Vodafone Group | N/A | N/A | N/A |
Summary
NetApp beats Vodafone Group on 10 of the 17 factors compared between the two stocks.