TEF vs. Z: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TEF and Z, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TEF’s market capitalization of 29.85 billion USD is substantially larger than Z’s 17.42 billion USD, indicating a significant difference in their market valuations.
Z carries a higher beta at 2.11, indicating it’s more sensitive to market moves, while TEF (beta: 0.56) exhibits greater stability.
TEF trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, Z is a standard domestic listing.
| Symbol | TEF | Z |
|---|---|---|
| Company Name | Telefónica, S.A. | Zillow Group, Inc. Class C |
| Country | ES | US |
| Sector | Communication Services | Communication Services |
| Industry | Telecommunications Services | Internet Content & Information |
| CEO | Marc Thomas Murtra Millar | Jeremy Wacksman |
| Price | 5.29 USD | 72.53 USD |
| Market Cap | 29.85 billion USD | 17.42 billion USD |
| Beta | 0.56 | 2.11 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 12, 1987 | August 3, 2015 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of TEF and Z by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
TEF
-10.32%
Telecommunications Services Industry
- Max
- 36.08%
- Q3
- 16.39%
- Median
- 6.66%
- Q1
- -5.80%
- Min
- -26.90%
TEF has a negative Return on Equity of -10.32%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Z
-1.73%
Internet Content & Information Industry
- Max
- 42.68%
- Q3
- 9.10%
- Median
- 3.28%
- Q1
- -14.17%
- Min
- -26.11%
Z has a negative Return on Equity of -1.73%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
TEF
0.74%
Telecommunications Services Industry
- Max
- 13.02%
- Q3
- 6.76%
- Median
- 4.03%
- Q1
- 0.50%
- Min
- -4.79%
TEF’s Return on Invested Capital of 0.74% is in line with the norm for the Telecommunications Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
Z
-3.05%
Internet Content & Information Industry
- Max
- 31.34%
- Q3
- 14.95%
- Median
- 3.03%
- Q1
- -6.25%
- Min
- -25.52%
Z has a negative Return on Invested Capital of -3.05%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
Net Profit Margin
TEF
-4.67%
Telecommunications Services Industry
- Max
- 20.59%
- Q3
- 10.07%
- Median
- 3.00%
- Q1
- -4.53%
- Min
- -18.76%
TEF has a negative Net Profit Margin of -4.67%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Z
-3.51%
Internet Content & Information Industry
- Max
- 39.11%
- Q3
- 15.31%
- Median
- 4.00%
- Q1
- -6.97%
- Min
- -36.95%
Z has a negative Net Profit Margin of -3.51%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin
TEF
6.09%
Telecommunications Services Industry
- Max
- 37.46%
- Q3
- 22.75%
- Median
- 10.32%
- Q1
- 0.62%
- Min
- -16.66%
TEF’s Operating Profit Margin of 6.09% is around the midpoint for the Telecommunications Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Z
-6.98%
Internet Content & Information Industry
- Max
- 42.92%
- Q3
- 15.51%
- Median
- 2.63%
- Q1
- -6.98%
- Min
- -18.41%
Z has a negative Operating Profit Margin of -6.98%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | TEF | Z |
|---|---|---|
| Return on Equity (TTM) | -10.32% | -1.73% |
| Return on Assets (TTM) | -1.90% | -1.41% |
| Return on Invested Capital (TTM) | 0.74% | -3.05% |
| Net Profit Margin (TTM) | -4.67% | -3.51% |
| Operating Profit Margin (TTM) | 6.09% | -6.98% |
| Gross Profit Margin (TTM) | 69.50% | 76.44% |
Financial Strength
Current Ratio
TEF
0.97
Telecommunications Services Industry
- Max
- 2.27
- Q3
- 1.38
- Median
- 0.96
- Q1
- 0.66
- Min
- 0.36
TEF’s Current Ratio of 0.97 aligns with the median group of the Telecommunications Services industry, indicating that its short-term liquidity is in line with its sector peers.
Z
2.46
Internet Content & Information Industry
- Max
- 7.37
- Q3
- 3.97
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.33
Z’s Current Ratio of 2.46 aligns with the median group of the Internet Content & Information industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
TEF
0.40
Telecommunications Services Industry
- Max
- 4.64
- Q3
- 2.32
- Median
- 1.35
- Q1
- 0.63
- Min
- 0.00
Falling into the lower quartile for the Telecommunications Services industry, TEF’s Debt-to-Equity Ratio of 0.40 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Z
0.14
Internet Content & Information Industry
- Max
- 0.55
- Q3
- 0.49
- Median
- 0.14
- Q1
- 0.03
- Min
- 0.00
Z’s Debt-to-Equity Ratio of 0.14 is typical for the Internet Content & Information industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
TEF
5.43
Telecommunications Services Industry
- Max
- 8.83
- Q3
- 4.35
- Median
- 2.26
- Q1
- 0.11
- Min
- -1.74
TEF’s Interest Coverage Ratio of 5.43 is in the upper quartile for the Telecommunications Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Z
-5.03
Internet Content & Information Industry
- Max
- 26.56
- Q3
- 12.92
- Median
- 3.11
- Q1
- -5.03
- Min
- -16.11
Z has a negative Interest Coverage Ratio of -5.03. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | TEF | Z |
|---|---|---|
| Current Ratio (TTM) | 0.97 | 2.46 |
| Quick Ratio (TTM) | 0.93 | 2.46 |
| Debt-to-Equity Ratio (TTM) | 0.40 | 0.14 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.06 | -1.86 |
| Interest Coverage Ratio (TTM) | 5.43 | -5.03 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for TEF and Z. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
TEF
6.15%
Telecommunications Services Industry
- Max
- 128.28%
- Q3
- 6.07%
- Median
- 1.86%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.15%, TEF offers a more attractive income stream than most of its peers in the Telecommunications Services industry, signaling a strong commitment to shareholder returns.
Z
0.00%
Internet Content & Information Industry
- Max
- 8.40%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Z currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
TEF
-86.15%
Telecommunications Services Industry
- Max
- 146.49%
- Q3
- 63.59%
- Median
- 29.65%
- Q1
- 0.00%
- Min
- 0.00%
TEF has a negative Dividend Payout Ratio of -86.15%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Z
0.00%
Internet Content & Information Industry
- Max
- 112.27%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Z has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | TEF | Z |
|---|---|---|
| Dividend Yield (TTM) | 6.15% | 0.00% |
| Dividend Payout Ratio (TTM) | -86.15% | 0.00% |
Valuation
Price-to-Earnings Ratio
TEF
-13.62
Telecommunications Services Industry
- Max
- 27.65
- Q3
- 20.70
- Median
- 15.25
- Q1
- 10.05
- Min
- 5.86
TEF has a negative P/E Ratio of -13.62. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
Z
-216.92
Internet Content & Information Industry
- Max
- 56.51
- Q3
- 39.89
- Median
- 18.31
- Q1
- 10.09
- Min
- 0.08
Z has a negative P/E Ratio of -216.92. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
Forward P/E to Growth Ratio
TEF
-3.11
Telecommunications Services Industry
- Max
- 3.27
- Q3
- 2.93
- Median
- 1.35
- Q1
- 0.64
- Min
- 0.01
TEF has a negative Forward PEG Ratio of -3.11. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Z
-6.63
Internet Content & Information Industry
- Max
- 4.26
- Q3
- 2.09
- Median
- 0.83
- Q1
- 0.47
- Min
- 0.01
Z has a negative Forward PEG Ratio of -6.63. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
TEF
0.64
Telecommunications Services Industry
- Max
- 3.23
- Q3
- 1.83
- Median
- 1.32
- Q1
- 0.83
- Min
- 0.11
In the lower quartile for the Telecommunications Services industry, TEF’s P/S Ratio of 0.64 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Z
7.56
Internet Content & Information Industry
- Max
- 10.83
- Q3
- 6.47
- Median
- 2.35
- Q1
- 0.97
- Min
- 0.66
Z’s P/S Ratio of 7.56 is in the upper echelon for the Internet Content & Information industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
TEF
1.30
Telecommunications Services Industry
- Max
- 4.39
- Q3
- 2.65
- Median
- 1.82
- Q1
- 1.09
- Min
- 0.29
TEF’s P/B Ratio of 1.30 is within the conventional range for the Telecommunications Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Z
3.70
Internet Content & Information Industry
- Max
- 12.17
- Q3
- 6.35
- Median
- 2.86
- Q1
- 0.91
- Min
- 0.02
The P/B Ratio is often not a primary valuation metric for the Internet Content & Information industry.
Valuation at a Glance
| Symbol | TEF | Z |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -13.62 | -216.92 |
| Forward PEG Ratio (TTM) | -3.11 | -6.63 |
| Price-to-Sales Ratio (P/S, TTM) | 0.64 | 7.56 |
| Price-to-Book Ratio (P/B, TTM) | 1.30 | 3.70 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.31 | 85.41 |
| EV-to-EBITDA (TTM) | 2.13 | 140.95 |
| EV-to-Sales (TTM) | 0.65 | 7.46 |