Vodafone vs Telefónica
Vodafone and Telefónica are examined on this page to provide a neutral view of how they operate within the telecommunications sector. This page compares business models, financial performance, and market context, highlighting similarities and differences in approach, scale, and strategic priorities in accessible terms. Educational content, not financial advice.
Vodafone and Telefónica are examined on this page to provide a neutral view of how they operate within the telecommunications sector. This page compares business models, financial performance, and mar...
Why It's Moving
Vodafone shares nudged by fresh buybacks and management signals even as broader telecom momentum remains mixed
- Company reported recent transactions in its own shares over the past few days, signaling continued execution of its share repurchase program and returning cash to shareholders.
- Management commentary and updates this week reiterated focus on cost reductions and improving organic performance in Europe, which investors interpret as evidence the turnaround plan is still on track and supporting near-term free-cash-flow prospects.
- Sector context: telecom peers show mixed operational momentum, so Vodafone’s buybacks and steady messaging are acting as short-term catalysts while investors wait for clearer revenue and EBITDA progression across its markets.
Analysts Pile On with Strong Sell Consensus as Telefónica Faces Renewed Pressure.
- Bank of America reaffirmed 'underperform' on December 4 with a $3.83 target, signaling limited upside potential in core markets.
- Weiss Ratings stuck with 'sell (d)' this week, while Citigroup's recent neutral downgrade underscores profitability challenges.
- Trading at a 634% premium to Morningstar's $1.80 fair value, the stock highlights overvaluation risks despite a high 7.76% dividend yield.
Vodafone shares nudged by fresh buybacks and management signals even as broader telecom momentum remains mixed
- Company reported recent transactions in its own shares over the past few days, signaling continued execution of its share repurchase program and returning cash to shareholders.
- Management commentary and updates this week reiterated focus on cost reductions and improving organic performance in Europe, which investors interpret as evidence the turnaround plan is still on track and supporting near-term free-cash-flow prospects.
- Sector context: telecom peers show mixed operational momentum, so Vodafone’s buybacks and steady messaging are acting as short-term catalysts while investors wait for clearer revenue and EBITDA progression across its markets.
Analysts Pile On with Strong Sell Consensus as Telefónica Faces Renewed Pressure.
- Bank of America reaffirmed 'underperform' on December 4 with a $3.83 target, signaling limited upside potential in core markets.
- Weiss Ratings stuck with 'sell (d)' this week, while Citigroup's recent neutral downgrade underscores profitability challenges.
- Trading at a 634% premium to Morningstar's $1.80 fair value, the stock highlights overvaluation risks despite a high 7.76% dividend yield.
Which Baskets Do They Appear In?
Investing for Beginners | Global Brands Nigerians Use
With rising inflation in Nigeria, building wealth through familiar global companies offers a potential way to protect purchasing power. This basket provides exposure to US/EU-listed multinational corporations with significant operations and brand presence across the African continent.
Published: September 29, 2025
Explore BasketSmall Cap Stocks: High-Risk, High-Growth Analysis
Smaller, high-growth companies can offer diversification for Nigerian investors looking beyond established giants. This basket provides exposure through global companies, such as fund sponsors and market infrastructure providers, that are linked to emerging market growth.
Published: September 18, 2025
Explore BasketLagos Stock Exchange: Beyond Local Trading Systems
As Nigeria's financial markets continue to modernise and attract global interest, the underlying infrastructure powering this growth presents a unique opportunity. This basket offers exposure to leading US and EU-listed companies that provide the essential technology, data, and services for stock exchanges worldwide.
Published: September 18, 2025
Explore BasketWhich Baskets Do They Appear In?
Investing for Beginners | Global Brands Nigerians Use
With rising inflation in Nigeria, building wealth through familiar global companies offers a potential way to protect purchasing power. This basket provides exposure to US/EU-listed multinational corporations with significant operations and brand presence across the African continent.
Published: September 29, 2025
Explore BasketSmall Cap Stocks: High-Risk, High-Growth Analysis
Smaller, high-growth companies can offer diversification for Nigerian investors looking beyond established giants. This basket provides exposure through global companies, such as fund sponsors and market infrastructure providers, that are linked to emerging market growth.
Published: September 18, 2025
Explore BasketLagos Stock Exchange: Beyond Local Trading Systems
As Nigeria's financial markets continue to modernise and attract global interest, the underlying infrastructure powering this growth presents a unique opportunity. This basket offers exposure to leading US and EU-listed companies that provide the essential technology, data, and services for stock exchanges worldwide.
Published: September 18, 2025
Explore BasketBest Dividend Stocks: Could Africa Exposure Pay Off?
As economic uncertainty and inflation challenge savings in Nigeria, dividend-paying companies offer a potential source of regular income. This basket provides exposure to US/EU-listed multinational corporations with significant operations or consumer markets across Africa.
Published: September 9, 2025
Explore BasketNigeria Agritech: Which Global Stocks May Benefit?
Nigeria's agricultural sector is undergoing a massive tech-driven upgrade, creating new efficiencies and improving farmer livelihoods. This basket offers exposure to the global technology giants in precision farming, e-commerce, and digital payments that enable the growth of local agritech platforms.
Published: September 8, 2025
Explore BasketInvestment Analysis
Vodafone
VOD
Pros
- Vodafone has demonstrated significant revenue scale with €37.45 billion reported, supporting its competitive position in global telecommunications.
- The company has shown a notable share price recovery with a year-to-date increase of over 21%, indicating positive market sentiment.
- Strong leadership with recent executive appointments, including a new CFO as of October 2025, suggests a focus on strategic financial management.
Considerations
- Vodafone reported a substantial net loss of approximately €4.15 billion, reflecting ongoing profitability challenges.
- Gross margin stands at a modest 33.43%, indicating potential pressure on operational efficiency.
- The company faces risks linked to its complex multinational operations, including regulatory and market competition in Europe and other regions.
Telefónica
TEF
Pros
- Telefónica has shown revenue growth to €42.14 billion in 2024, indicating stable top-line performance despite macroeconomic challenges.
- The firm is actively restructuring by selling non-core assets to simplify its corporate structure, aiming to unlock shareholder value.
- A healthy dividend yield around 6%, combined with efforts to reduce losses, offers income appeal to investors.
Considerations
- Telefónica is currently unprofitable with reported net losses of €318 million in 2024, and an overall negative EPS of -0.49.
- Wall Street analysts predominantly rate Telefónica as a strong sell with price targets suggesting potential downside nearing 20%.
- The slow pace of portfolio reshaping and high debt levels create execution risks, exacerbated by regulatory scrutiny of telecom deals.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Vodafone vs Wipro
Vodafone vs Wipro
Vodafone vs Teradyne
Vodafone vs Teradyne: Company comparison
CoStar Group vs Telefónica
CoStar Group vs Telefónica: a comparison