Head to Head Review: TELUS (NYSE:TU) versus Vodacom Group (OTCMKTS:VDMCY)

Vodacom Group (OTCMKTS:VDMCY) and TELUS (NYSE:TU) are both large-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Institutional and Insider Ownership

49.4% of TELUS shares are held by institutional investors. 0.1% of TELUS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vodacom Group and TELUS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vodacom Group	N/A	N/A	N/A
TELUS	-4.51%	8.01%	2.21%

Valuation and Earnings

This table compares Vodacom Group and TELUS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vodacom Group	N/A	N/A	N/A	N/A	N/A
TELUS	$20.21 billion	0.75	$796.57 million	($0.41)	-23.59

TELUS has higher revenue and earnings than Vodacom Group.

Analyst Ratings

This is a summary of current recommendations for Vodacom Group and TELUS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vodacom Group	0	1	0	0	2.00
TELUS	4	9	3	0	1.94

TELUS has a consensus target price of $15.33, suggesting a potential upside of 58.57%. Given TELUS’s higher probable upside, analysts plainly believe TELUS is more favorable than Vodacom Group.

Summary

TELUS beats Vodacom Group on 7 of the 9 factors compared between the two stocks.

About Vodacom Group

Vodacom Group Limited operates as a connectivity, digital, and financial services company in South Africa and internationally. It offers range of communication services, including data, mobile and fixed voice, messaging, financial services, enterprise IT, and converged services. The company also provides mobile and fixed line connectivity solutions, as well as internet and virtual private network services to its customers over various wireless, fixed-line, satellite, mobile, and converged technologies; and cloud hosting and security services comprising infrastructure as a service, platform as a service, software as a service, security services, hosted applications, and primary and direct connectivity to all hyperscalers. In addition, it offers carrier service products, including wholesale APN data, microwave, managed satellite, WiFi, international private leased circuit, IP transit, fiber, and IP-VPN; ethernet over MPLS, carrier ethernet, cloud connect, dedicated internet access, broadband internet access, software-defined WAN, and VSAT services; sensors and other electronic devices that are attached to a remote machine enabling the capturing of critical information, such as temperature, speed, location, etc.; and digital financial services for personal finance and business solutions. Further, the company offers and SmartCitizen mobile app to provide transparency and accountability with services, such as water and sanitation, roads, education, and health. The company was founded in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited is a subsidiary of Vodafone Group Plc.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.