Meru Networks (NASDAQ: MERU) and Vodafone Group PLC (NASDAQ:VOD) are both telecommunications services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Meru Networks and Vodafone Group PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meru Networks 0 0 0 0 N/A
Vodafone Group PLC 1 4 8 1 2.64

Vodafone Group PLC has a consensus price target of $31.52, indicating a potential upside of 8.69%. Given Vodafone Group PLC’s higher probable upside, analysts clearly believe Vodafone Group PLC is more favorable than Meru Networks.

Earnings & Valuation

This table compares Meru Networks and Vodafone Group PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meru Networks N/A N/A N/A N/A N/A
Vodafone Group PLC $56.26 billion 1.37 $13.59 billion N/A N/A

Vodafone Group PLC has higher revenue and earnings than Meru Networks.

Institutional and Insider Ownership

10.9% of Vodafone Group PLC shares are held by institutional investors. 1.0% of Vodafone Group PLC shares are held by company 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.

Dividends

Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.7%. Meru Networks does not pay a dividend.

Profitability

This table compares Meru Networks and Vodafone Group PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meru Networks -46.15% N/A -86.56%
Vodafone Group PLC N/A N/A N/A

Summary

Vodafone Group PLC beats Meru Networks on 9 of the 9 factors compared between the two stocks.

About Meru Networks

Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.

About Vodafone Group PLC

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.

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