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VZ vs LUMN
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
VZ vs LUMN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $200.09B | $10.10B |
| Revenue (TTM) | $138.19B | $12.12B |
| Net Income (TTM) | $17.17B | $-1.74B |
| Gross Margin | 55.7% | 35.2% |
| Operating Margin | 21.2% | -2.6% |
| Forward P/E | 9.6x | — |
| Total Debt | $200.59B | $17.71B |
| Cash & Equiv. | $19.05B | $1.00B |
VZ vs LUMN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Verizon Communicati… (VZ) | 100 | 82.7 | -17.3% |
| Lumen Technologies,… (LUMN) | 100 | 99.8 | -0.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VZ vs LUMN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VZ carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 11 yrs, beta -0.11, yield 5.7%
- Rev growth 2.5%, EPS growth -2.2%, 3Y rev CAGR 0.3%
- 42.2% 10Y total return vs LUMN's -31.7%
LUMN is the clearest fit if your priority is sleep-well-at-night.
- Lower volatility, beta 2.74, current ratio 1.80x
- +130.3% vs VZ's +13.7%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.5% revenue growth vs LUMN's -5.4% | |
| Value | Better valuation composite | |
| Quality / Margins | 12.4% margin vs LUMN's -14.3% | |
| Dividends | 5.7% yield, 11-year raise streak, vs LUMN's 0.0% | |
| Momentum (1Y) | +130.3% vs VZ's +13.7% | |
| Efficiency (ROA) | 4.4% ROA vs LUMN's -5.3%, ROIC 8.0% vs -0.8% |
VZ vs LUMN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VZ vs LUMN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
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 — 11.4x LUMN's $12.1B. VZ is the more profitable business, keeping 12.4% of every revenue dollar as net income compared to LUMN's -14.3%. On growth, VZ holds the edge at +2.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $138.2B | $12.1B |
| EBITDAEarnings before interest/tax | $47.6B | $2.4B |
| Net IncomeAfter-tax profit | $17.2B | -$1.7B |
| Free Cash FlowCash after capex | $19.8B | $5.4B |
| Gross MarginGross profit ÷ Revenue | +55.7% | +35.2% |
| Operating MarginEBIT ÷ Revenue | +21.2% | -2.6% |
| Net MarginNet income ÷ Revenue | +12.4% | -14.3% |
| FCF MarginFCF ÷ Revenue | +14.3% | +44.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.0% | -8.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -53.4% | 0.0% |
Valuation Metrics
Evenly matched — VZ and LUMN each lead in 2 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, VZ's 8.0x EV/EBITDA is more attractive than LUMN's 10.5x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $200.1B | $10.1B |
| Enterprise ValueMkt cap + debt − cash | $381.6B | $26.8B |
| Trailing P/EPrice ÷ TTM EPS | 11.68x | -5.61x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.59x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 8.02x | 10.45x |
| Price / SalesMarket cap ÷ Revenue | 1.45x | 0.81x |
| Price / BookPrice ÷ Book value/share | 1.90x | — |
| Price / FCFMarket cap ÷ FCF | 9.94x | 27.23x |
Profitability & Efficiency
VZ leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
VZ delivers a 16.4% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-79 for LUMN.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +16.4% | -79.4% |
| ROA (TTM)Return on assets | +4.4% | -5.3% |
| ROICReturn on invested capital | +8.0% | -0.8% |
| ROCEReturn on capital employed | +8.8% | -0.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.90x | — |
| Net DebtTotal debt minus cash | $181.5B | $16.7B |
| Cash & Equiv.Liquid assets | $19.0B | $1.0B |
| Total DebtShort + long-term debt | $200.6B | $17.7B |
| Interest CoverageEBIT ÷ Interest expense | 4.39x | -1.12x |
Total Returns (Dividends Reinvested)
LUMN leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in VZ five years ago would be worth $10,237 today (with dividends reinvested), compared to $8,421 for LUMN. Over the past 12 months, LUMN leads with a +130.3% total return vs VZ's +13.7%. The 3-year compound annual growth rate (CAGR) favors LUMN at 62.2% vs VZ's 13.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +20.5% | +27.6% |
| 1-Year ReturnPast 12 months | +13.7% | +130.3% |
| 3-Year ReturnCumulative with dividends | +46.8% | +326.5% |
| 5-Year ReturnCumulative with dividends | +2.4% | -15.8% |
| 10-Year ReturnCumulative with dividends | +42.2% | -31.7% |
| CAGR (3Y)Annualised 3-year return | +13.7% | +62.2% |
Risk & Volatility
VZ leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
VZ is the less volatile stock with a -0.11 beta — it tends to amplify market swings less than LUMN's 2.74 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 91.8% from its 52-week high vs LUMN's 82.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.11x | 2.74x |
| 52-Week HighHighest price in past year | $51.68 | $11.95 |
| 52-Week LowLowest price in past year | $10.60 | $3.37 |
| % of 52W HighCurrent price vs 52-week peak | +91.8% | +82.1% |
| RSI (14)Momentum oscillator 0–100 | 48.5 | 67.3 |
| Avg Volume (50D)Average daily shares traded | 24.4M | 12.5M |
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VZ as "Hold" and LUMN as "Hold". Consensus price targets imply 8.7% upside for VZ (target: $52) vs -27.8% for LUMN (target: $7). VZ is the only dividend payer here at 5.72% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $51.56 | $7.08 |
| # AnalystsCovering analysts | 60 | 28 |
| Dividend YieldAnnual dividend ÷ price | +5.7% | +0.0% |
| Dividend StreakConsecutive years of raises | 11 | 0 |
| Dividend / ShareAnnual DPS | $2.71 | $0.00 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
VZ leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). LUMN leads in 1 (Total Returns). 1 tied.
VZ vs LUMN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VZ or LUMN a better buy right now?
For growth investors, Verizon Communications Inc.
(VZ) is the stronger pick with 2. 5% revenue growth year-over-year, versus -5. 4% for Lumen Technologies, Inc. (LUMN). 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 Verizon Communications Inc. (VZ) a "Hold" — based on 60 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 is the better long-term investment — VZ or LUMN?
Over the past 5 years, Verizon Communications Inc.
(VZ) delivered a total return of +2. 4%, compared to -15. 8% for Lumen Technologies, Inc. (LUMN). Over 10 years, the gap is even starker: VZ returned +42. 2% versus LUMN's -31. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — VZ or LUMN?
By beta (market sensitivity over 5 years), Verizon Communications Inc.
(VZ) is the lower-risk stock at -0. 11β versus Lumen Technologies, Inc. 's 2. 74β — meaning LUMN is approximately -2681% more volatile than VZ relative to the S&P 500.
04Which is growing faster — VZ or LUMN?
By revenue growth (latest reported year), Verizon Communications Inc.
(VZ) is pulling ahead at 2. 5% versus -5. 4% for Lumen Technologies, Inc. (LUMN). On earnings-per-share growth, the picture is similar: Verizon Communications Inc. grew EPS -2. 2% year-over-year, compared to -30. 4% for Lumen Technologies, Inc.. Over a 3-year CAGR, VZ leads at 0. 3% 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.
05Which has better profit margins — VZ or LUMN?
Verizon Communications Inc.
(VZ) is the more profitable company, earning 12. 4% net margin versus -14. 0% for Lumen Technologies, Inc. — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VZ leads at 21. 2% versus -1. 5% for LUMN. At the gross margin level — before operating expenses — LUMN leads at 46. 5%, 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.
06Is VZ or LUMN more undervalued right now?
Analyst consensus price targets imply the most upside for VZ: 8.
7% to $51. 56.
07Which pays a better dividend — VZ or LUMN?
In this comparison, VZ (5.
7% yield) pays a dividend. LUMN does not pay a meaningful dividend and should not be held primarily for income.
08Is VZ or LUMN better for a retirement portfolio?
For long-horizon retirement investors, Verizon Communications Inc.
(VZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 11), 5. 7% yield). Lumen Technologies, Inc. (LUMN) carries a higher beta of 2. 74 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (VZ: +42. 2%, LUMN: -31. 7%), 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.
09What are the main differences between VZ and LUMN?
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: VZ is a large-cap deep-value stock; LUMN is a mid-cap quality compounder stock. VZ pays a dividend while LUMN does not, making them suitable for different income and tax situations. 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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