Comprehensive Stock Comparison
Compare Verizon Communications Inc. (VZ) vs T-Mobile US, Inc. (TMUS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TMUS | 8.5% revenue growth vs VZ's 2.5% |
| Value | VZ | Lower P/E (10.2x vs 20.8x) |
| Quality / Margins | VZ | 12.4% net margin vs TMUS's 12.4% |
| Stability / Safety | VZ | Beta 0.10 vs TMUS's 0.19, lower leverage |
| Dividends | VZ | 5.4% yield, 10-year raise streak, vs TMUS's 1.7% |
| Momentum (1Y) | VZ | +22.7% vs TMUS's -17.8% |
| Efficiency (ROA) | TMUS | 5.0% ROA vs VZ's 4.3%, ROIC 8.0% vs 8.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Verizon is a telecommunications giant providing wireless and wireline connectivity services to consumers and businesses across the United States. It generates revenue primarily from wireless service plans (~70% of total revenue) and equipment sales, supplemented by Fios broadband, video, and business solutions. The company's key advantage is its extensive nationwide network infrastructure—particularly its 5G leadership—which creates high switching costs for customers and barriers to entry for competitors.
T-Mobile US is a major wireless telecommunications carrier providing mobile voice, messaging, and data services to consumers and businesses. It generates revenue primarily from postpaid and prepaid service plans—roughly 80% of total revenue—with the remainder coming from device sales and equipment installment plans. The company's key competitive advantage is its extensive 5G network—the largest in the U.S.—which it built through strategic spectrum acquisitions and the Sprint merger.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
VZ leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). TMUS leads in 2 (Profitability & Efficiency, Total Returns).
Financial Metrics (TTM)
VZ is the larger business by revenue, generating $138.5B annually — 1.6x TMUS's $88.3B. Profitability is closely matched — net margins range from 12.4% (VZ) to 12.4% (TMUS). On growth, TMUS holds the edge at +11.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $138.5B | $88.3B |
| EBITDAEarnings before interest/tax | $47.8B | $31.8B |
| Net IncomeAfter-tax profit | $17.2B | $11.0B |
| Free Cash FlowCash after capex | $23.1B | $10.5B |
| Gross MarginGross profit ÷ Revenue | +55.6% | +43.1% |
| Operating MarginEBIT ÷ Revenue | +21.2% | +20.7% |
| Net MarginNet income ÷ Revenue | +12.4% | +12.4% |
| FCF MarginFCF ÷ Revenue | +16.7% | +11.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.5% | +11.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +50.0% | -26.6% |
Valuation Metrics
At 12.3x trailing earnings, VZ trades at a 45% valuation discount to TMUS's 22.3x P/E. On an enterprise value basis, VZ's 8.3x EV/EBITDA is more attractive than TMUS's 11.1x.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| Market CapShares × price | $211.4B | $240.3B |
| Enterprise ValueMkt cap + debt − cash | $393.0B | $351.9B |
| Trailing P/EPrice ÷ TTM EPS | 12.35x | 22.33x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.22x | 20.77x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.75x |
| EV / EBITDAEnterprise value multiple | 8.25x | 11.07x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 2.72x |
| Price / BookPrice ÷ Book value/share | 2.01x | 4.15x |
| Price / FCFMarket cap ÷ FCF | 10.51x | 23.23x |
Profitability & Efficiency
TMUS delivers a 18.6% return on equity — every $100 of shareholder capital generates $19 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 1.98x. On the Piotroski fundamental quality scale (0–9), TMUS scores 7/9 vs VZ's 6/9, reflecting strong financial health.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +16.3% | +18.6% |
| ROA (TTM)Return on assets | +4.3% | +5.0% |
| ROICReturn on invested capital | +8.0% | +8.0% |
| ROCEReturn on capital employed | +8.8% | +9.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 1.90x | 1.98x |
| Net DebtTotal debt minus cash | $181.5B | $111.6B |
| Cash & Equiv.Liquid assets | $19.0B | $5.6B |
| Total DebtShort + long-term debt | $200.6B | $117.2B |
| Interest CoverageEBIT ÷ Interest expense | 4.37x | — |
Total Returns (with DRIP)
A $10,000 investment in TMUS five years ago would be worth $18,229 today (with dividends reinvested), compared to $11,437 for VZ. Over the past 12 months, VZ leads with a +22.7% total return vs TMUS's -17.8%. The 3-year compound annual growth rate (CAGR) favors TMUS at 16.6% vs VZ's 14.5% — a key indicator of consistent wealth creation.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +25.4% | +9.3% |
| 1-Year ReturnPast 12 months | +22.7% | -17.8% |
| 3-Year ReturnCumulative with dividends | +49.9% | +58.4% |
| 5-Year ReturnCumulative with dividends | +14.4% | +82.3% |
| 10-Year ReturnCumulative with dividends | +48.3% | +507.1% |
| CAGR (3Y)Annualised 3-year return | +14.5% | +16.6% |
Risk & Volatility
VZ is the less volatile stock with a 0.10 beta — it tends to amplify market swings less than TMUS's 0.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 99.3% from its 52-week high vs TMUS's 78.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.10x | 0.19x |
| 52-Week HighHighest price in past year | $50.48 | $276.49 |
| 52-Week LowLowest price in past year | $10.60 | $181.36 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +78.5% |
| RSI (14)Momentum oscillator 0–100 | 66.9 | 56.7 |
| Avg Volume (50D)Average daily shares traded | 28.1M | 5.1M |
Analyst Outlook
Wall Street rates VZ as "Hold" and TMUS as "Buy". Consensus price targets imply 18.6% upside for TMUS (target: $257) vs -1.6% for VZ (target: $49). For income investors, VZ offers the higher dividend yield at 5.41% vs TMUS's 1.68%.
| Metric | VZVerizon Communica… | TMUST-Mobile US, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $49.36 | $257.42 |
| # AnalystsCovering analysts | 60 | 53 |
| Dividend YieldAnnual dividend ÷ price | +5.4% | +1.7% |
| Dividend StreakConsecutive years of raises | 10 | 3 |
| Dividend / ShareAnnual DPS | $2.71 | $3.64 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +4.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
| T-Mobile US, Inc. (TMUS) | 100 | 209.01 | +109.0% |
T-Mobile US, Inc. (TMUS) returned +82% over 5 years vs Verizon Communicati… (VZ)'s +14%. A $10,000 investment in TMUS 5 years ago would be worth $18,229 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
| T-Mobile US, Inc. (TMUS) | $37.5B | $88.3B | +135.6% |
Verizon Communications Inc.'s revenue grew from $126.0B (2016) to $138.2B (2025) — a 1.0% CAGR. T-Mobile US, Inc.'s revenue grew from $37.5B (2016) to $88.3B (2025) — a 10.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
| T-Mobile US, Inc. (TMUS) | 3.9% | 12.4% | +219.6% |
Verizon Communications Inc.'s net margin went from 10% (2016) to 12% (2025). T-Mobile US, Inc.'s net margin went from 4% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
| T-Mobile US, Inc. (TMUS) | 12.2 | 20.9 | +71.3% |
Verizon Communications Inc. has traded in a 7x–15x P/E range over 9 years; current trailing P/E is ~12x. T-Mobile US, Inc. has traded in a 12x–68x P/E range over 9 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
| T-Mobile US, Inc. (TMUS) | 1.69 | 9.72 | +475.1% |
Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR. T-Mobile US, Inc.'s EPS grew from $1.69 (2016) to $9.72 (2025) — a 21% CAGR.
Chart 6Free Cash Flow — 5 Years
Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021). T-Mobile US, Inc. generated $10B FCF in 2025 (+233% vs 2021).
VZ vs TMUS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VZ or TMUS a better buy right now?
Verizon Communications Inc. (VZ) offers the better valuation at 12.3x trailing P/E (10.2x forward), making it the more compelling value choice. Analysts rate T-Mobile US, Inc. (TMUS) a "Buy" — based on 53 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 — VZ or TMUS?
On trailing P/E, Verizon Communications Inc. (VZ) is the cheapest at 12.3x versus T-Mobile US, Inc. at 22.3x. On forward P/E, Verizon Communications Inc. is actually cheaper at 10.2x.
03Which is the better long-term investment — VZ or TMUS?
Over the past 5 years, T-Mobile US, Inc. (TMUS) delivered a total return of +82.3%, compared to +14.4% for Verizon Communications Inc. (VZ). A $10,000 investment in TMUS five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TMUS returned +507.1% versus VZ's +48.3%. 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 — VZ or TMUS?
By beta (market sensitivity over 5 years), Verizon Communications Inc. (VZ) is the lower-risk stock at 0.10β versus T-Mobile US, Inc.'s 0.19β — meaning TMUS is approximately 95% more volatile than VZ relative to the S&P 500. On balance sheet safety, Verizon Communications Inc. (VZ) carries a lower debt/equity ratio of 190% versus 198% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — VZ or TMUS?
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: VZ leads at 21.2% versus 20.7% for TMUS. At the gross margin level — before operating expenses — VZ leads at 45.6%, 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.
06Is VZ or TMUS more undervalued right now?
On forward earnings alone, Verizon Communications Inc. (VZ) trades at 10.2x forward P/E versus 20.8x for T-Mobile US, Inc. — 10.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 18.6% to $257.42.
07Which pays a better dividend — VZ or TMUS?
All stocks in this comparison pay dividends. Verizon Communications Inc. (VZ) offers the highest yield at 5.4%, versus 1.7% for T-Mobile US, Inc. (TMUS).
08Is VZ or TMUS 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 0.19), 1.7% yield, +507.1% 10Y return). Both have compounded well over 10 years (TMUS: +507.1%, VZ: +48.3%), 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 TMUS?
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; TMUS is a large-cap quality compounder 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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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 7%
- Dividend Yield > 2.1%