Telecom Carriers
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Side-by-side financial analysisStock Comparison
T vs VZ
Revenue, margins, valuation, and 5-year total return — side by side.
Telecom Carriers
T vs VZ — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecom Carriers | Telecom Carriers |
| Market Cap | $148.22B | $190.78B |
| Revenue (TTM) | $128.85B | $139.39B |
| Net Income (TTM) | $13.07B | $16.42B |
| Gross Margin | 59.7% | 59.1% |
| Operating Margin | 18.6% | 20.9% |
| Forward P/E | 9.0x | 9.0x |
| Total Debt | $173.99B | $200.59B |
| Cash & Equiv. | $18.23B | $19.05B |
T vs VZ — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Nov 20 | Nov 26 | Return |
|---|---|---|---|
| AT&T Inc. (T) | 100 | 99.7 | -0.3% |
| Verizon Communicati… (VZ) | 100 | 75.6 | -24.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: T vs VZ
Each card shows where this stock fits in a portfolio — not just who wins on paper.
T is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 2.7%, EPS growth 104.0%, 3Y rev CAGR 1.3%
- Lower volatility, beta -0.38, current ratio 0.91x
- 2.7% revenue growth vs VZ's 2.5%
VZ carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 21 yrs, beta -0.41, yield 5.9%
- 50.0% 10Y total return vs T's 35.3%
- Beta -0.41, yield 5.9%, current ratio 0.91x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.7% revenue growth vs VZ's 2.5% | |
| Value | Lower P/E (9.0x vs 9.0x) | |
| Quality / Margins | 11.8% margin vs T's 10.1% | |
| Stability / Safety | Lower D/E ratio (135.4% vs 189.7%) | |
| Dividends | 5.9% yield, 21-year raise streak, vs T's 5.3% | |
| Momentum (1Y) | +21.8% vs T's -8.1% | |
| Efficiency (ROA) | 4.0% ROA vs T's 3.0%, ROIC 8.0% vs 6.9% |
T vs VZ — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
T vs VZ — 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 and T operate at a comparable scale, with $139.4B and $128.9B in trailing revenue. Profitability is closely matched — net margins range from 11.8% (VZ) to 10.1% (T). On growth, T holds the edge at +5.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $128.9B | $139.4B |
| EBITDAEarnings before interest/tax | $44.0B | $48.6B |
| Net IncomeAfter-tax profit | $13.1B | $16.4B |
| Free Cash FlowCash after capex | -$12.2B | $9.7B |
| Gross MarginGross profit ÷ Revenue | +59.7% | +59.1% |
| Operating MarginEBIT ÷ Revenue | +18.6% | +20.9% |
| Net MarginNet income ÷ Revenue | +10.1% | +11.8% |
| FCF MarginFCF ÷ Revenue | -9.4% | +7.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.3% | +1.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -90.7% | +6.8% |
Valuation Metrics
T leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 7.1x trailing earnings, T trades at a 37% valuation discount to VZ's 11.3x P/E. On an enterprise value basis, T's 6.6x EV/EBITDA is more attractive than VZ's 7.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $148.2B | $190.8B |
| Enterprise ValueMkt cap + debt − cash | $304.0B | $372.3B |
| Trailing P/EPrice ÷ TTM EPS | 7.12x | 11.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.01x | 9.05x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 6.62x | 7.82x |
| Price / SalesMarket cap ÷ Revenue | 1.18x | 1.38x |
| Price / BookPrice ÷ Book value/share | 1.21x | 1.83x |
| Price / FCFMarket cap ÷ FCF | 7.62x | 9.48x |
Profitability & Efficiency
T leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
VZ delivers a 15.5% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $10 for T. T carries lower financial leverage with a 1.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), T scores 7/9 vs VZ's 4/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +10.3% | +15.5% |
| ROA (TTM)Return on assets | +3.0% | +4.0% |
| ROICReturn on invested capital | +6.9% | +8.0% |
| ROCEReturn on capital employed | +7.0% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 1.35x | 1.90x |
| Net DebtTotal debt minus cash | $155.8B | $181.5B |
| Cash & Equiv.Liquid assets | $18.2B | $19.0B |
| Total DebtShort + long-term debt | $174.0B | $200.6B |
| Interest CoverageEBIT ÷ Interest expense | 4.97x | 4.39x |
Total Returns (Dividends Reinvested)
Evenly matched — T and VZ each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in T five years ago would be worth $14,602 today (with dividends reinvested), compared to $11,292 for VZ. Over the past 12 months, VZ leads with a +21.8% total return vs T's -8.1%. The 3-year compound annual growth rate (CAGR) favors T at 16.6% vs VZ's 14.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -7.4% | +19.7% |
| 1-Year ReturnPast 12 months | -8.1% | +21.8% |
| 3-Year ReturnCumulative with dividends | +58.5% | +51.2% |
| 5-Year ReturnCumulative with dividends | +46.0% | +12.9% |
| 10-Year ReturnCumulative with dividends | +35.3% | +50.0% |
| CAGR (3Y)Annualised 3-year return | +16.6% | +14.8% |
Risk & Volatility
VZ leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
VZ is the less volatile stock with a -0.41 beta — it tends to amplify market swings less than T's -0.38 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 88.4% from its 52-week high vs T's 73.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.38x | -0.41x |
| 52-Week HighHighest price in past year | $29.44 | $51.68 |
| 52-Week LowLowest price in past year | $19.89 | $38.68 |
| % of 52W HighCurrent price vs 52-week peak | +73.5% | +88.4% |
| RSI (14)Momentum oscillator 0–100 | 42.8 | 55.3 |
| Avg Volume (50D)Average daily shares traded | 45.6M | 25.3M |
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates T as "Hold" and VZ as "Hold". Consensus price targets imply 22.0% upside for T (target: $26) vs 4.7% for VZ (target: $48). For income investors, VZ offers the higher dividend yield at 5.94% vs T's 5.27%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $26.39 | $47.86 |
| # AnalystsCovering analysts | 62 | 62 |
| Dividend YieldAnnual dividend ÷ price | +5.3% | +5.9% |
| Dividend StreakConsecutive years of raises | 0 | 21 |
| Dividend / ShareAnnual DPS | $1.14 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.4% | 0.0% |
VZ leads in 3 of 6 categories (Income & Cash Flow, Risk & Volatility). T leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Custom Comparison: T vs VZ
Compare on any lens — Growth, Value, Income, or pick from 130+ individual metrics.
T vs VZ: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is T or VZ 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 2. 5% for Verizon Communications Inc. (VZ). AT&T Inc. (T) offers the better valuation at 7. 1x trailing P/E (9. 0x forward), making it the more compelling value choice. Analysts rate AT&T Inc. (T) a "Hold" — based on 62 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 — T or VZ?
On trailing P/E, AT&T Inc.
(T) is the cheapest at 7. 1x versus Verizon Communications Inc. at 11. 3x. On forward P/E, AT&T Inc. is actually cheaper at 9. 0x.
03Which is the better long-term investment — T or VZ?
Over the past 5 years, AT&T Inc.
(T) delivered a total return of +46. 0%, compared to +12. 9% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: VZ returned +50. 0% versus T's +35. 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 — T or VZ?
By beta (market sensitivity over 5 years), Verizon Communications Inc.
(VZ) is the lower-risk stock at -0. 41β versus AT&T Inc. 's -0. 38β — meaning T is approximately -8% more volatile than VZ relative to the S&P 500. On balance sheet safety, AT&T Inc. (T) carries a lower debt/equity ratio of 135% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — T or VZ?
By revenue growth (latest reported year), AT&T Inc.
(T) is pulling ahead at 2. 7% versus 2. 5% for Verizon Communications Inc. (VZ). On earnings-per-share growth, the picture is similar: AT&T Inc. grew EPS 104. 0% year-over-year, compared to -2. 2% for Verizon Communications 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.
06Which has better profit margins — T or VZ?
AT&T Inc.
(T) is the more profitable company, earning 17. 4% net margin versus 12. 4% for Verizon Communications Inc. — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VZ leads at 21. 2% versus 19. 9% for T. At the gross margin level — before operating expenses — T leads at 59. 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.
07Is T or VZ more undervalued right now?
On forward earnings alone, AT&T Inc.
(T) trades at 9. 0x forward P/E versus 9. 0x for Verizon Communications Inc. — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for T: 22. 0% to $26. 39.
08Which pays a better dividend — T or VZ?
All stocks in this comparison pay dividends.
Verizon Communications Inc. (VZ) offers the highest yield at 5. 9%, versus 5. 3% for AT&T Inc. (T).
09Is T or VZ 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. 41), 5. 9% yield). Both have compounded well over 10 years (VZ: +50. 0%, T: +35. 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.
10What are the main differences between T 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.
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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