Analyzing Vodafone Group (VOD) and RigNet (RNET)

Vodafone Group (NASDAQ: VOD) and RigNet (NASDAQ:RNET) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

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10.9% of Vodafone Group shares are owned by institutional investors. Comparatively, 91.8% of RigNet shares are owned by institutional investors. 1.0% of Vodafone Group shares are owned by company insiders. Comparatively, 1.2% of RigNet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Vodafone Group and RigNet’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
RigNet -7.92% -11.51% -5.62%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vodafone Group 1 0 8 1 2.90
RigNet 0 3 0 0 2.00

Vodafone Group presently has a consensus price target of $31.96, suggesting a potential upside of 14.86%. RigNet has a consensus price target of $17.00, suggesting a potential upside of 25.00%. Given RigNet’s higher probable upside, analysts plainly believe RigNet is more favorable than Vodafone Group.

Valuation & Earnings

This table compares Vodafone Group and RigNet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vodafone Group $52.29 billion 1.42 -$6.91 billion $0.89 31.26
RigNet $204.89 million 1.21 -$16.17 million ($0.71) -19.15

RigNet has lower revenue, but higher earnings than Vodafone Group. RigNet is trading at a lower price-to-earnings ratio than Vodafone Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Vodafone Group pays an annual dividend of $1.73 per share and has a dividend yield of 6.2%. RigNet does not pay a dividend. Vodafone Group pays out 194.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Vodafone Group has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, RigNet has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Summary

Vodafone Group beats RigNet on 11 of the 17 factors compared between the two stocks.

Vodafone Group Company Profile

Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.

RigNet Company Profile

RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally. The company operates through three segments: Managed Services, Applications and Internet-of-Things (Apps & IoT), and Systems Integration. The Managed Services segment provides remote communications, telephony, and technology services, including data, Internet, and Voice over Internet Protocol services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. It also offers private networking and wide area network (WAN) acceleration solutions, software-defined appliances, content filtering, and Wi-Fi hotspots. The Apps & IoT segment provides supervisory control and data acquisition systems to monitor, gather, and process data while interacting with machines and devices, such as pipelines, valves, pumps, and motors; data analytics solutions to enhance customer productivity and safety; weather data monitoring services in the North Sea to support operations; adaptive video intelligence and video collaboration solutions; BlackTIE and CyphreLink cybersecurity offerings that protects customers data; and Wi-Fi hotspot solutions, which facilitate access to the Internet by personnel in remote facilities. The Systems Integration segment engages in the design, procurement, assembly and test, installation, and commissioning of communications systems, including WAN/LAN connectivity, access control, public address, microwave, and monitoring and control systems, as well as closed circuit televisions for monitoring and security. RigNet, Inc. was founded in 2000 and is headquartered in Houston, Texas.

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