TMUS
T-Mobile US, Inc.
Telecommunications Services
Market Cap$210.32B
5Y Perf.+94.3%
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Stock Comparison
TMUS vs VZ
Revenue, margins, valuation, and 5-year total return — side by side.
VZ
Verizon Communications Inc.
Telecommunications Services
Market Cap$199.66B
5Y Perf.-17.5%
TMUS vs VZ — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TMUS | VZ |
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $210.32B | $199.66B |
| Revenue (TTM) | $90.53B | $138.19B |
| Net Income (TTM) | $10.54B | $17.17B |
| Gross Margin | 54.3% | 55.7% |
| Operating Margin | 20.4% | 21.2% |
| Forward P/E | 18.5x | 9.6x |
| Total Debt | $122.27B | $200.59B |
| Cash & Equiv. | $5.60B | $19.05B |
TMUS vs VZ — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TMUS
VZ
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 100 | 194.3 | +94.3% |
| Verizon Communicati… (VZ) | 100 | 82.5 | -17.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TMUS vs VZ
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: VZ leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. T-Mobile US, Inc. is the stronger pick specifically for growth and revenue expansion and operational efficiency and capital deployment. As sector peers, any of these can serve as alternatives in the same allocation.
TMUS
T-Mobile US, Inc.
The Growth Play
TMUS is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 8.5%, EPS growth 0.6%, 3Y rev CAGR 3.5%
- 415.9% 10Y total return vs VZ's 42.8%
- Lower volatility, beta -0.28, current ratio 1.00x
Best for: growth exposure and long-term compounding
VZ
Verizon Communications Inc.
The Income Pick
VZ carries the broadest edge in this set and is the clearest fit for income & stability.
- Dividend streak 11 yrs, beta -0.11, yield 5.7%
- Lower P/E (9.6x vs 18.5x)
- 12.4% margin vs TMUS's 11.6%
Best for: income & stability
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TMUS | 8.5% revenue growth vs VZ's 2.5% |
| Value | VZ | Lower P/E (9.6x vs 18.5x) |
| Quality / Margins | VZ | 12.4% margin vs TMUS's 11.6% |
| Stability / Safety | VZ | Lower D/E ratio (189.7% vs 206.5%) |
| Dividends | VZ | 5.7% yield, 11-year raise streak, vs TMUS's 1.9% |
| Momentum (1Y) | VZ | +15.1% vs TMUS's -20.2% |
| Efficiency (ROA) | TMUS | 4.9% ROA vs VZ's 4.4%, ROIC 8.1% vs 8.0% |
TMUS vs VZ — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
TMUS vs VZ — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLVZLAGGINGTMUS
TMUST-Mobile US, Inc.
1leads
VZVerizon Communication…
4leads
6 Total Categories
CATEGORYLEADERvs TMUSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
VZ4/6
Valuation MetricsMultiples, price ratios, and targets
VZ6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TMUS8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
VZ4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
VZ2/2
Income & Cash Flow (Last 12 Months)
VZ leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VZ is the larger business by revenue, generating $138.2B annually — 1.5x TMUS's $90.5B. Profitability is closely matched — net margins range from 12.4% (VZ) to 11.6% (TMUS). On growth, TMUS holds the edge at +10.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| RevenueTrailing 12 months | $90.5B | $138.2B |
| EBITDAEarnings before interest/tax | $29.9B | $47.6B |
| Net IncomeAfter-tax profit | $10.5B | $17.2B |
| Free Cash FlowCash after capex | $10.7B | $19.8B |
| Gross MarginGross profit ÷ Revenue | +54.3% | +55.7% |
| Operating MarginEBIT ÷ Revenue | +20.4% | +21.2% |
| Net MarginNet income ÷ Revenue | +11.6% | +12.4% |
| FCF MarginFCF ÷ Revenue | +11.8% | +14.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.6% | +2.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -12.0% | -53.4% |
VZ leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
VZ leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 11.7x trailing earnings, VZ trades at a 42% valuation discount to TMUS's 20.0x P/E. On an enterprise value basis, VZ's 8.0x EV/EBITDA is more attractive than TMUS's 10.1x.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| Market CapShares × price | $210.3B | $199.7B |
| Enterprise ValueMkt cap + debt − cash | $327.0B | $381.2B |
| Trailing P/EPrice ÷ TTM EPS | 19.99x | 11.66x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.46x | 9.57x |
| PEG RatioP/E ÷ EPS growth rate | 0.67x | — |
| EV / EBITDAEnterprise value multiple | 10.14x | 8.01x |
| Price / SalesMarket cap ÷ Revenue | 2.38x | 1.44x |
| Price / BookPrice ÷ Book value/share | 3.71x | 1.89x |
| Price / FCFMarket cap ÷ FCF | 20.33x | 9.92x |
VZ leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
TMUS leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
TMUS delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $16 for VZ. VZ carries lower financial leverage with a 1.90x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 2.07x. On the Piotroski fundamental quality scale (0–9), TMUS scores 6/9 vs VZ's 4/9, reflecting solid financial health.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| ROE (TTM)Return on equity | +17.8% | +16.4% |
| ROA (TTM)Return on assets | +4.9% | +4.4% |
| ROICReturn on invested capital | +8.1% | +8.0% |
| ROCEReturn on capital employed | +9.8% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 2.07x | 1.90x |
| Net DebtTotal debt minus cash | $116.7B | $181.5B |
| Cash & Equiv.Liquid assets | $5.6B | $19.0B |
| Total DebtShort + long-term debt | $122.3B | $200.6B |
| Interest CoverageEBIT ÷ Interest expense | 5.33x | 4.39x |
TMUS leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
VZ leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TMUS five years ago would be worth $15,098 today (with dividends reinvested), compared to $10,325 for VZ. Over the past 12 months, VZ leads with a +15.1% total return vs TMUS's -20.2%. The 3-year compound annual growth rate (CAGR) favors VZ at 13.6% vs TMUS's 12.2% — a key indicator of consistent wealth creation.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| YTD ReturnYear-to-date | -2.1% | +20.3% |
| 1-Year ReturnPast 12 months | -20.2% | +15.1% |
| 3-Year ReturnCumulative with dividends | +41.1% | +46.6% |
| 5-Year ReturnCumulative with dividends | +51.0% | +3.2% |
| 10-Year ReturnCumulative with dividends | +415.9% | +42.8% |
| CAGR (3Y)Annualised 3-year return | +12.2% | +13.6% |
VZ leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — TMUS and VZ each lead in 1 of 2 comparable metrics.
Risk & Volatility
TMUS is the less volatile stock with a -0.28 beta — it tends to amplify market swings less than VZ's -0.11 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 91.6% from its 52-week high vs TMUS's 74.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.28x | -0.11x |
| 52-Week HighHighest price in past year | $261.56 | $51.68 |
| 52-Week LowLowest price in past year | $181.36 | $10.60 |
| % of 52W HighCurrent price vs 52-week peak | +74.3% | +91.6% |
| RSI (14)Momentum oscillator 0–100 | 46.9 | 50.1 |
| Avg Volume (50D)Average daily shares traded | 5.7M | 24.5M |
Evenly matched — TMUS and VZ each lead in 1 of 2 comparable metrics.
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TMUS as "Buy" and VZ as "Hold". Consensus price targets imply 30.7% upside for TMUS (target: $254) vs 8.9% for VZ (target: $52). For income investors, VZ offers the higher dividend yield at 5.73% vs TMUS's 1.87%.
| Metric | TMUST-Mobile US, Inc. | VZVerizon Communica… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $254.08 | $51.56 |
| # AnalystsCovering analysts | 54 | 60 |
| Dividend YieldAnnual dividend ÷ price | +1.9% | +5.7% |
| Dividend StreakConsecutive years of raises | 3 | 11 |
| Dividend / ShareAnnual DPS | $3.64 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.7% | 0.0% |
VZ leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
VZ leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). TMUS leads in 1 (Profitability & Efficiency). 1 tied.
Best OverallVerizon Communications Inc. (VZ)Leads 4 of 6 categories
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TMUS vs VZ: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TMUS or VZ a better buy right now?
For growth investors, T-Mobile US, Inc.
(TMUS) is the stronger pick with 8. 5% revenue growth year-over-year, versus 2. 5% for Verizon Communications Inc. (VZ). Verizon Communications Inc. (VZ) offers the better valuation at 11. 7x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate T-Mobile US, Inc. (TMUS) a "Buy" — based on 54 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TMUS or VZ?
On trailing P/E, Verizon Communications Inc.
(VZ) is the cheapest at 11. 7x versus T-Mobile US, Inc. at 20. 0x. On forward P/E, Verizon Communications Inc. is actually cheaper at 9. 6x.
03Which is the better long-term investment — TMUS or VZ?
Over the past 5 years, T-Mobile US, Inc.
(TMUS) delivered a total return of +51. 0%, compared to +3. 2% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: TMUS returned +415. 9% versus VZ's +42. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TMUS or VZ?
By beta (market sensitivity over 5 years), T-Mobile US, Inc.
(TMUS) is the lower-risk stock at -0. 28β versus Verizon Communications Inc. 's -0. 11β — meaning VZ is approximately -62% more volatile than TMUS relative to the S&P 500. On balance sheet safety, Verizon Communications Inc. (VZ) carries a lower debt/equity ratio of 190% versus 2% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TMUS or VZ?
By revenue growth (latest reported year), T-Mobile US, Inc.
(TMUS) is pulling ahead at 8. 5% versus 2. 5% for Verizon Communications Inc. (VZ). On earnings-per-share growth, the picture is similar: T-Mobile US, Inc. grew EPS 0. 6% year-over-year, compared to -2. 2% for Verizon Communications Inc.. Over a 3-year CAGR, TMUS leads at 3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TMUS or VZ?
T-Mobile US, Inc.
(TMUS) is the more profitable company, earning 12. 4% net margin versus 12. 4% for Verizon Communications Inc. — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TMUS leads at 21. 2% versus 21. 2% for VZ. At the gross margin level — before operating expenses — TMUS leads at 47. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is TMUS or VZ more undervalued right now?
On forward earnings alone, Verizon Communications Inc.
(VZ) trades at 9. 6x forward P/E versus 18. 5x for T-Mobile US, Inc. — 8. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 30. 7% to $254. 08.
08Which pays a better dividend — TMUS or VZ?
All stocks in this comparison pay dividends.
Verizon Communications Inc. (VZ) offers the highest yield at 5. 7%, versus 1. 9% for T-Mobile US, Inc. (TMUS).
09Is TMUS or VZ better for a retirement portfolio?
For long-horizon retirement investors, T-Mobile US, Inc.
(TMUS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 28), 1. 9% yield, +415. 9% 10Y return). Both have compounded well over 10 years (TMUS: +415. 9%, VZ: +42. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between TMUS and VZ?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: TMUS is a large-cap quality compounder stock; VZ is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(TMUS: 10.6% · VZ: 2.0%)Net Margin>
%
(TMUS: 11.6% · VZ: 12.4%)P/E Ratio<
x
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