Telecommunications Services
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LUMN vs T
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
LUMN vs T — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $9.51B | $181.06B |
| Revenue (TTM) | $12.12B | $126.52B |
| Net Income (TTM) | $-1.74B | $21.41B |
| Gross Margin | 12.5% | 79.7% |
| Operating Margin | 2.6% | 19.4% |
| Forward P/E | — | 11.2x |
| Total Debt | $17.71B | $173.99B |
| Cash & Equiv. | $1.00B | $18.23B |
LUMN vs T — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Lumen Technologies,… (LUMN) | 100 | 93.9 | -6.1% |
| AT&T Inc. (T) | 100 | 111.3 | +11.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LUMN vs T
Each card shows where this stock fits in a portfolio — not just who wins on paper.
LUMN is the clearest fit if your priority is sleep-well-at-night and defensive.
- Lower volatility, beta 2.74, current ratio 1.80x
- Beta 2.74, yield 0.0%, current ratio 1.80x
- +118.2% vs T's -1.7%
T carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 2 yrs, beta -0.26, yield 4.4%
- Rev growth 2.7%, EPS growth 104.0%, 3Y rev CAGR 1.3%
- 44.6% 10Y total return vs LUMN's -32.9%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.7% revenue growth vs LUMN's -5.4% | |
| Value | Better valuation composite | |
| Quality / Margins | 16.9% margin vs LUMN's -14.3% | |
| Dividends | 4.4% yield, 2-year raise streak, vs LUMN's 0.0% | |
| Momentum (1Y) | +118.2% vs T's -1.7% | |
| Efficiency (ROA) | 5.1% ROA vs LUMN's -5.3%, ROIC 6.7% vs -0.8% |
LUMN vs T — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
LUMN vs T — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
T leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
T is the larger business by revenue, generating $126.5B annually — 10.4x LUMN's $12.1B. T is the more profitable business, keeping 16.9% of every revenue dollar as net income compared to LUMN's -14.3%. On growth, T holds the edge at +2.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $12.1B | $126.5B |
| EBITDAEarnings before interest/tax | $3.0B | $45.1B |
| Net IncomeAfter-tax profit | -$1.7B | $21.4B |
| Free Cash FlowCash after capex | $5.4B | $10.6B |
| Gross MarginGross profit ÷ Revenue | +12.5% | +79.7% |
| Operating MarginEBIT ÷ Revenue | +2.6% | +19.4% |
| Net MarginNet income ÷ Revenue | -14.3% | +16.9% |
| FCF MarginFCF ÷ Revenue | +44.9% | +8.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | -8.9% | +2.9% |
| EPS Growth (YoY)Latest quarter vs prior year | 0.0% | -11.5% |
Valuation Metrics
Evenly matched — LUMN and T each lead in 2 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, T's 7.5x EV/EBITDA is more attractive than LUMN's 10.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $9.5B | $181.1B |
| Enterprise ValueMkt cap + debt − cash | $26.2B | $336.8B |
| Trailing P/EPrice ÷ TTM EPS | -5.27x | 8.53x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 11.22x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 10.22x | 7.48x |
| Price / SalesMarket cap ÷ Revenue | 0.77x | 1.44x |
| Price / BookPrice ÷ Book value/share | — | 1.45x |
| Price / FCFMarket cap ÷ FCF | 25.62x | 9.31x |
Profitability & Efficiency
T leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
T delivers a 16.8% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $-79 for LUMN. On the Piotroski fundamental quality scale (0–9), T scores 7/9 vs LUMN's 4/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -79.4% | +16.8% |
| ROA (TTM)Return on assets | -5.3% | +5.1% |
| ROICReturn on invested capital | -0.8% | +6.7% |
| ROCEReturn on capital employed | -0.6% | +6.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | — | 1.35x |
| Net DebtTotal debt minus cash | $16.7B | $155.8B |
| Cash & Equiv.Liquid assets | $1.0B | $18.2B |
| Total DebtShort + long-term debt | $17.7B | $174.0B |
| Interest CoverageEBIT ÷ Interest expense | -1.12x | 4.97x |
Total Returns (Dividends Reinvested)
LUMN leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in T five years ago would be worth $13,319 today (with dividends reinvested), compared to $8,403 for LUMN. Over the past 12 months, LUMN leads with a +118.2% total return vs T's -1.7%. The 3-year compound annual growth rate (CAGR) favors LUMN at 59.4% vs T's 19.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +20.0% | +7.8% |
| 1-Year ReturnPast 12 months | +118.2% | -1.7% |
| 3-Year ReturnCumulative with dividends | +304.8% | +70.8% |
| 5-Year ReturnCumulative with dividends | -16.0% | +33.2% |
| 10-Year ReturnCumulative with dividends | -32.9% | +44.6% |
| CAGR (3Y)Annualised 3-year return | +59.4% | +19.5% |
Risk & Volatility
T leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
T is the less volatile stock with a -0.26 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. T currently trades 87.0% from its 52-week high vs LUMN's 77.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.74x | -0.26x |
| 52-Week HighHighest price in past year | $11.95 | $29.79 |
| 52-Week LowLowest price in past year | $3.37 | $22.95 |
| % of 52W HighCurrent price vs 52-week peak | +77.2% | +87.0% |
| RSI (14)Momentum oscillator 0–100 | 69.9 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 12.2M | 33.9M |
Analyst Outlook
T leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates LUMN as "Hold" and T as "Hold". Consensus price targets imply 13.5% upside for T (target: $29) vs -23.3% for LUMN (target: $7). T is the only dividend payer here at 4.39% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $7.08 | $29.42 |
| # AnalystsCovering analysts | 28 | 62 |
| Dividend YieldAnnual dividend ÷ price | +0.0% | +4.4% |
| Dividend StreakConsecutive years of raises | 0 | 2 |
| Dividend / ShareAnnual DPS | $0.00 | $1.14 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.5% |
T leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). LUMN leads in 1 (Total Returns). 1 tied.
LUMN vs T: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LUMN or T a better buy right now?
For growth investors, AT&T Inc.
(T) is the stronger pick with 2. 7% revenue growth year-over-year, versus -5. 4% for Lumen Technologies, Inc. (LUMN). AT&T Inc. (T) offers the better valuation at 8. 5x trailing P/E (11. 2x forward), making it the more compelling value choice. Analysts rate Lumen Technologies, Inc. (LUMN) a "Hold" — based on 28 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 — LUMN or T?
Over the past 5 years, AT&T Inc.
(T) delivered a total return of +33. 2%, compared to -16. 0% for Lumen Technologies, Inc. (LUMN). Over 10 years, the gap is even starker: T returned +44. 6% versus LUMN's -32. 9%. 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 — LUMN or T?
By beta (market sensitivity over 5 years), AT&T Inc.
(T) is the lower-risk stock at -0. 26β versus Lumen Technologies, Inc. 's 2. 74β — meaning LUMN is approximately -1156% more volatile than T relative to the S&P 500.
04Which is growing faster — LUMN or T?
By revenue growth (latest reported year), AT&T Inc.
(T) is pulling ahead at 2. 7% versus -5. 4% for Lumen Technologies, Inc. (LUMN). On earnings-per-share growth, the picture is similar: AT&T Inc. grew EPS 104. 0% year-over-year, compared to -30. 4% for Lumen Technologies, Inc.. Over a 3-year CAGR, T leads at 1. 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 — LUMN or T?
AT&T Inc.
(T) is the more profitable company, earning 17. 4% net margin versus -14. 0% for Lumen Technologies, Inc. — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: T leads at 19. 2% versus -1. 5% for LUMN. At the gross margin level — before operating expenses — T leads at 79. 8%, 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 LUMN or T more undervalued right now?
Analyst consensus price targets imply the most upside for T: 13.
5% to $29. 42.
07Which pays a better dividend — LUMN or T?
In this comparison, T (4.
4% yield) pays a dividend. LUMN does not pay a meaningful dividend and should not be held primarily for income.
08Is LUMN or T better for a retirement portfolio?
For long-horizon retirement investors, AT&T Inc.
(T) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 26), 4. 4% 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 (T: +44. 6%, LUMN: -32. 9%), 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 LUMN and T?
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: LUMN is a small-cap quality compounder stock; T is a mid-cap deep-value stock. T 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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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 10%
- Dividend Yield > 1.7%
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