SBAC vs TMUS

For growth investors, T-Mobile US, Inc.

(TMUS) is the stronger pick with 8. 5% revenue growth year-over-year, versus 5. 1% for SBA Communications Corporation (SBAC). T-Mobile US, Inc. (TMUS) offers the better valuation at 20. 0x trailing P/E (18. 5x forward), making it the more compelling value choice. Analysts rate SBA Communications Corporation (SBAC) a "Buy" — based on 42 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.

On trailing P/E, T-Mobile US, Inc.

(TMUS) is the cheapest at 20. 0x versus SBA Communications Corporation at 22. 2x. On forward P/E, T-Mobile US, Inc. is actually cheaper at 18. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: SBA Communications Corporation wins at 0. 25x versus T-Mobile US, Inc. 's 0. 62x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, T-Mobile US, Inc.

(TMUS) delivered a total return of +51. 0%, compared to -20. 1% for SBA Communications Corporation (SBAC). Over 10 years, the gap is even starker: TMUS returned +415. 9% versus SBAC's +138. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), T-Mobile US, Inc.

(TMUS) is the lower-risk stock at -0. 28β versus SBA Communications Corporation's 0. 16β — meaning SBAC is approximately -158% more volatile than TMUS relative to the S&P 500.

By revenue growth (latest reported year), T-Mobile US, Inc.

(TMUS) is pulling ahead at 8. 5% versus 5. 1% for SBA Communications Corporation (SBAC). On earnings-per-share growth, the picture is similar: SBA Communications Corporation grew EPS 41. 2% year-over-year, compared to 0. 6% for T-Mobile US, 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.

SBA Communications Corporation (SBAC) is the more profitable company, earning 37.

4% net margin versus 12. 4% for T-Mobile US, Inc. — meaning it keeps 37. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SBAC leads at 48. 7% versus 21. 2% for TMUS. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, SBA Communications Corporation (SBAC) is the more undervalued stock at a PEG of 0. 25x versus T-Mobile US, Inc. 's 0. 62x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, T-Mobile US, Inc. (TMUS) trades at 18. 5x forward P/E versus 29. 2x for SBA Communications Corporation — 10. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 30. 7% to $254. 08.

All stocks in this comparison pay dividends.

SBA Communications Corporation (SBAC) offers the highest yield at 2. 0%, versus 1. 9% for T-Mobile US, Inc. (TMUS).

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%, SBAC: +138. 2%), 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.

These companies operate in different sectors (SBAC (Real Estate) and TMUS (Communication Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.