Critical Analysis: Turkcell Iletisim Hizmetleri AS (NYSE:TKC) and Vodafone Group (NASDAQ:VOD)

Vodafone Group (NASDAQ:VOD) and Turkcell Iletisim Hizmetleri AS (NYSE:TKC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares Vodafone Group and Turkcell Iletisim Hizmetleri AS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vodafone Group	$39.39 billion	0.75	-$4.48 billion	N/A	N/A
Turkcell Iletisim Hizmetleri AS	$5.08 billion	1.01	$717.47 million	$0.37	15.70

Turkcell Iletisim Hizmetleri AS has lower revenue, but higher earnings than Vodafone Group.

Profitability

This table compares Vodafone Group and Turkcell Iletisim Hizmetleri AS’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
Turkcell Iletisim Hizmetleri AS	7.52%	7.47%	3.77%

Dividends

Vodafone Group pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. Turkcell Iletisim Hizmetleri AS pays an annual dividend of $0.16 per share and has a dividend yield of 2.8%. Turkcell Iletisim Hizmetleri AS pays out 43.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Vodafone Group and Turkcell Iletisim Hizmetleri AS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vodafone Group	7	3	1	0	1.45
Turkcell Iletisim Hizmetleri AS	0	1	0	0	2.00

Vodafone Group presently has a consensus target price of $72.00, suggesting a potential upside of 477.39%. Given Vodafone Group’s higher probable upside, research analysts clearly believe Vodafone Group is more favorable than Turkcell Iletisim Hizmetleri AS.

Risk and Volatility

Vodafone Group has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Turkcell Iletisim Hizmetleri AS has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

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 Turkcell Iletisim Hizmetleri AS

Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Turkish Republic of Northern Cyprus, and the Netherlands. It operates through Turkcell Turkey, Turkcell International, and Techfin segments. It offers work contact services, such as mobile communications, fixed business internet and business phone, and customer loyalty and programs; digital business services comprising uninterrupted access, cyber security, data center, Internet of Things, big data, e-transformation, technologies, and managed services, and cloud solutions. It also provides various devices, hardware, software, and financing solutions; and digital services, including search, invoice, and TL services, as well as information, entertainment, and application services. In addition, the company offers TV+, a television platform; fizy, a digital music platform; YaaniMail, a local e-mail service; GAME+; Iste Suit; BiP; smart legal documentation automation; Chatbot; and home internet and TV services. Turkcell Iletisim Hizmetleri A.S. was incorporated in 1993 and is headquartered in Istanbul, Turkey.