Comprehensive Stock Comparison
Compare BCE Inc. (BCE) vs Verizon Communications Inc. (VZ) 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 | VZ | 2.5% revenue growth vs BCE's -1.1% |
| Value | BCE | Lower P/E (10.2x vs 10.2x) |
| Quality / Margins | BCE | 25.9% net margin vs VZ's 12.4% |
| Stability / Safety | VZ | Lower D/E ratio (189.7% vs 220.7%) |
| Dividends | BCE | 11.0% yield, 2-year raise streak, vs VZ's 5.4% |
| Momentum (1Y) | VZ | +22.7% vs BCE's +20.9% |
| Efficiency (ROA) | BCE | 8.1% ROA vs VZ's 4.3%, ROIC 7.6% 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
BCE is Canada's largest telecommunications and media company, providing wireless, wireline internet, TV, and media services nationwide. It generates revenue primarily from wireless services (~40% of total), wireline broadband and TV (~45%), and media advertising and content (~15%). The company's competitive advantage lies in its extensive national network infrastructure — including fiber and wireless spectrum — which creates high barriers to entry and supports its bundled service offerings.
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.
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
BCE leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). VZ leads in 1 (Total Returns). 2 tied.
Financial Metrics (TTM)
VZ is the larger business by revenue, generating $138.5B annually — 5.7x BCE's $24.5B. BCE is the more profitable business, keeping 25.9% of every revenue dollar as net income compared to VZ's 12.4%.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| RevenueTrailing 12 months | $24.5B | $138.5B |
| EBITDAEarnings before interest/tax | $10.6B | $47.8B |
| Net IncomeAfter-tax profit | $6.3B | $17.2B |
| Free Cash FlowCash after capex | $3.4B | $23.1B |
| Gross MarginGross profit ÷ Revenue | +67.9% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +22.4% | +21.2% |
| Net MarginNet income ÷ Revenue | +25.9% | +12.4% |
| FCF MarginFCF ÷ Revenue | +14.0% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.3% | +1.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +4.6% | +50.0% |
Valuation Metrics
At 12.3x trailing earnings, VZ trades at a 94% valuation discount to BCE's 200.0x P/E. On an enterprise value basis, BCE's 6.6x EV/EBITDA is more attractive than VZ's 8.3x.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| Market CapShares × price | $24.5B | $211.4B |
| Enterprise ValueMkt cap + debt − cash | $51.4B | $393.0B |
| Trailing P/EPrice ÷ TTM EPS | 200.04x | 12.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.22x | 10.22x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 6.64x | 8.25x |
| Price / SalesMarket cap ÷ Revenue | 1.38x | 1.53x |
| Price / BookPrice ÷ Book value/share | 1.89x | 2.01x |
| Price / FCFMarket cap ÷ FCF | 13.12x | 10.51x |
Profitability & Efficiency
BCE delivers a 27.8% return on equity — every $100 of shareholder capital generates $28 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 BCE's 2.21x. On the Piotroski fundamental quality scale (0–9), VZ scores 6/9 vs BCE's 4/9, reflecting solid financial health.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| ROE (TTM)Return on equity | +27.8% | +16.3% |
| ROA (TTM)Return on assets | +8.1% | +4.3% |
| ROICReturn on invested capital | +7.6% | +8.0% |
| ROCEReturn on capital employed | +9.4% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 2.21x | 1.90x |
| Net DebtTotal debt minus cash | $36.7B | $181.5B |
| Cash & Equiv.Liquid assets | $1.6B | $19.0B |
| Total DebtShort + long-term debt | $38.3B | $200.6B |
| Interest CoverageEBIT ÷ Interest expense | 3.18x | 4.37x |
Total Returns (with DRIP)
A $10,000 investment in VZ five years ago would be worth $11,437 today (with dividends reinvested), compared to $9,047 for BCE. Over the past 12 months, VZ leads with a +22.7% total return vs BCE's +20.9%. The 3-year compound annual growth rate (CAGR) favors VZ at 14.5% vs BCE's -8.7% — a key indicator of consistent wealth creation.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| YTD ReturnYear-to-date | +11.2% | +25.4% |
| 1-Year ReturnPast 12 months | +20.9% | +22.7% |
| 3-Year ReturnCumulative with dividends | -23.8% | +49.9% |
| 5-Year ReturnCumulative with dividends | -9.5% | +14.4% |
| 10-Year ReturnCumulative with dividends | +18.7% | +48.3% |
| CAGR (3Y)Annualised 3-year return | -8.7% | +14.5% |
Risk & Volatility
BCE is the less volatile stock with a -0.15 beta — it tends to amplify market swings less than VZ's 0.10 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.15x | 0.10x |
| 52-Week HighHighest price in past year | $26.49 | $50.48 |
| 52-Week LowLowest price in past year | $20.28 | $10.60 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +99.3% |
| RSI (14)Momentum oscillator 0–100 | 54.6 | 66.9 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 28.1M |
Analyst Outlook
Wall Street rates BCE as "Hold" and VZ as "Hold". Consensus price targets imply -1.2% upside for BCE (target: $26) vs -1.6% for VZ (target: $49). For income investors, BCE offers the higher dividend yield at 11.00% vs VZ's 5.41%.
| Metric | BCEBCE Inc. | VZVerizon Communica… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $26.00 | $49.36 |
| # AnalystsCovering analysts | 21 | 60 |
| Dividend YieldAnnual dividend ÷ price | +11.0% | +5.4% |
| Dividend StreakConsecutive years of raises | 2 | 10 |
| Dividend / ShareAnnual DPS | $3.96 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.7% | 0.0% |
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 |
|---|---|---|---|
| BCE Inc. (BCE) | 100 | 55.55 | -44.5% |
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
Verizon Communicati… (VZ) returned +14% over 5 years vs BCE Inc. (BCE)'s -10%. A $10,000 investment in VZ 5 years ago would be worth $11,437 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BCE Inc. (BCE) | $21.7B | $24.4B | +12.4% |
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
Verizon Communications Inc.'s revenue grew from $126.0B (2016) to $138.2B (2025) — a 1.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BCE Inc. (BCE) | 14.0% | 1.4% | -89.9% |
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
Verizon Communications Inc.'s net margin went from 10% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| BCE Inc. (BCE) | 15 | 128.8 | +758.7% |
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
BCE Inc. has traded in a 12x–129x P/E range over 8 years; current trailing P/E is ~200x. Verizon Communications Inc. has traded in a 7x–15x P/E range over 9 years; current trailing P/E is ~12x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| BCE Inc. (BCE) | 3.33 | 0.18 | -94.6% |
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
BCE Inc. generated $3B FCF in 2024 (+135% vs 2021). Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021).
BCE vs VZ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BCE or VZ 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 BCE Inc. (BCE) a "Hold" — based on 21 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 — BCE or VZ?
On trailing P/E, Verizon Communications Inc. (VZ) is the cheapest at 12.3x versus BCE Inc. at 200.0x. On forward P/E, BCE Inc. is actually cheaper at 10.2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — BCE or VZ?
Over the past 5 years, Verizon Communications Inc. (VZ) delivered a total return of +14.4%, compared to -9.5% for BCE Inc. (BCE). A $10,000 investment in VZ five years ago would be worth approximately $11K today (assuming dividends reinvested). Over 10 years, the gap is even starker: VZ returned +48.3% versus BCE's +18.7%. 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 — BCE or VZ?
By beta (market sensitivity over 5 years), BCE Inc. (BCE) is the lower-risk stock at -0.15β versus Verizon Communications Inc.'s 0.10β — meaning VZ is approximately -165% more volatile than BCE 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 BCE Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BCE or VZ?
Verizon Communications Inc. (VZ) is the more profitable company, earning 12.4% net margin versus 1.4% for BCE Inc. — meaning it keeps 12.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BCE leads at 22.7% versus 21.2% for VZ. At the gross margin level — before operating expenses — BCE leads at 68.4%, 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 BCE or VZ more undervalued right now?
On forward earnings alone, BCE Inc. (BCE) trades at 10.2x forward P/E versus 10.2x for Verizon Communications Inc. — 0.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BCE: -1.2% to $26.00.
07Which pays a better dividend — BCE or VZ?
All stocks in this comparison pay dividends. BCE Inc. (BCE) offers the highest yield at 11.0%, versus 5.4% for Verizon Communications Inc. (VZ).
08Is BCE or VZ better for a retirement portfolio?
For long-horizon retirement investors, BCE Inc. (BCE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.15), 11.0% yield). Both have compounded well over 10 years (BCE: +18.7%, 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 BCE 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: BCE is a mid-cap income-oriented stock; VZ is a large-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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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 15%
- Dividend Yield > 4.3%
- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 7%
- Dividend Yield > 2.1%