Telecommunications Services
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T vs VZ vs TMUS
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
Telecommunications Services
T vs VZ vs TMUS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | |||
|---|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services | Telecommunications Services |
| Market Cap | $181.06B | $199.66B | $210.32B |
| Revenue (TTM) | $126.52B | $138.19B | $90.53B |
| Net Income (TTM) | $21.41B | $17.17B | $10.54B |
| Gross Margin | 79.7% | 55.7% | 54.3% |
| Operating Margin | 19.4% | 21.2% | 20.4% |
| Forward P/E | 11.2x | 9.6x | 18.5x |
| Total Debt | $173.99B | $200.59B | $122.27B |
| Cash & Equiv. | $18.23B | $19.05B | $5.60B |
T vs VZ vs TMUS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| AT&T Inc. (T) | 100 | 111.3 | +11.3% |
| Verizon Communicati… (VZ) | 100 | 82.5 | -17.5% |
| T-Mobile US, Inc. (TMUS) | 100 | 194.3 | +94.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: T vs VZ vs TMUS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
T has the current edge in this matchup, primarily because of its strength in sleep-well-at-night.
- Lower volatility, beta -0.26, current ratio 0.91x
- 16.9% margin vs TMUS's 11.6%
- Lower D/E ratio (135.4% vs 206.5%)
VZ is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 11 yrs, beta -0.11, yield 5.7%
- Beta -0.11, yield 5.7%, current ratio 0.91x
- Lower P/E (9.6x vs 18.5x)
TMUS is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 8.5%, EPS growth 0.6%, 3Y rev CAGR 3.5%
- 415.9% 10Y total return vs T's 44.6%
- 8.5% revenue growth vs VZ's 2.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.5% revenue growth vs VZ's 2.5% | |
| Value | Lower P/E (9.6x vs 18.5x) | |
| Quality / Margins | 16.9% margin vs TMUS's 11.6% | |
| Stability / Safety | Lower D/E ratio (135.4% vs 206.5%) | |
| Dividends | 5.7% yield, 11-year raise streak, vs T's 4.4% | |
| Momentum (1Y) | +15.1% vs TMUS's -20.2% | |
| Efficiency (ROA) | 5.1% ROA vs VZ's 4.4%, ROIC 6.7% vs 8.0% |
T vs VZ vs TMUS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
T vs VZ vs TMUS — Financial Metrics
Side-by-side numbers across 3 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
T leads this category, winning 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VZ is the larger business by revenue, generating $138.2B annually — 1.5x TMUS's $90.5B. T is the more profitable business, keeping 16.9% of every revenue dollar as net income compared to TMUS's 11.6%. On growth, TMUS holds the edge at +10.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | |||
|---|---|---|---|
| RevenueTrailing 12 months | $126.5B | $138.2B | $90.5B |
| EBITDAEarnings before interest/tax | $45.1B | $47.6B | $29.9B |
| Net IncomeAfter-tax profit | $21.4B | $17.2B | $10.5B |
| Free Cash FlowCash after capex | $10.6B | $19.8B | $10.7B |
| Gross MarginGross profit ÷ Revenue | +79.7% | +55.7% | +54.3% |
| Operating MarginEBIT ÷ Revenue | +19.4% | +21.2% | +20.4% |
| Net MarginNet income ÷ Revenue | +16.9% | +12.4% | +11.6% |
| FCF MarginFCF ÷ Revenue | +8.4% | +14.3% | +11.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.9% | +2.0% | +10.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -11.5% | -53.4% | -12.0% |
Valuation Metrics
T leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 8.5x trailing earnings, T trades at a 57% valuation discount to TMUS's 20.0x P/E. On an enterprise value basis, T's 7.5x EV/EBITDA is more attractive than TMUS's 10.1x.
| Metric | |||
|---|---|---|---|
| Market CapShares × price | $181.1B | $199.7B | $210.3B |
| Enterprise ValueMkt cap + debt − cash | $336.8B | $381.2B | $327.0B |
| Trailing P/EPrice ÷ TTM EPS | 8.53x | 11.66x | 19.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.22x | 9.57x | 18.46x |
| PEG RatioP/E ÷ EPS growth rate | — | — | 0.67x |
| EV / EBITDAEnterprise value multiple | 7.48x | 8.01x | 10.14x |
| Price / SalesMarket cap ÷ Revenue | 1.44x | 1.44x | 2.38x |
| Price / BookPrice ÷ Book value/share | 1.45x | 1.89x | 3.71x |
| Price / FCFMarket cap ÷ FCF | 9.31x | 9.92x | 20.33x |
Profitability & Efficiency
TMUS leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
TMUS delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $16 for VZ. T carries lower financial leverage with a 1.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 2.07x. 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 | +16.8% | +16.4% | +17.8% |
| ROA (TTM)Return on assets | +5.1% | +4.4% | +4.9% |
| ROICReturn on invested capital | +6.7% | +8.0% | +8.1% |
| ROCEReturn on capital employed | +6.8% | +8.8% | +9.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 | 6 |
| Debt / EquityFinancial leverage | 1.35x | 1.90x | 2.07x |
| Net DebtTotal debt minus cash | $155.8B | $181.5B | $116.7B |
| Cash & Equiv.Liquid assets | $18.2B | $19.0B | $5.6B |
| Total DebtShort + long-term debt | $174.0B | $200.6B | $122.3B |
| Interest CoverageEBIT ÷ Interest expense | 4.97x | 4.39x | 5.33x |
Total Returns (Dividends Reinvested)
Evenly matched — T and VZ and TMUS each lead in 2 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TMUS five years ago would be worth $15,098 today (with dividends reinvested), compared to $10,325 for VZ. Over the past 12 months, VZ leads with a +15.1% total return vs TMUS's -20.2%. The 3-year compound annual growth rate (CAGR) favors T at 19.5% vs TMUS's 12.2% — a key indicator of consistent wealth creation.
| Metric | |||
|---|---|---|---|
| YTD ReturnYear-to-date | +7.8% | +20.3% | -2.1% |
| 1-Year ReturnPast 12 months | -1.7% | +15.1% | -20.2% |
| 3-Year ReturnCumulative with dividends | +70.8% | +46.6% | +41.1% |
| 5-Year ReturnCumulative with dividends | +33.2% | +3.2% | +51.0% |
| 10-Year ReturnCumulative with dividends | +44.6% | +42.8% | +415.9% |
| CAGR (3Y)Annualised 3-year return | +19.5% | +13.6% | +12.2% |
Risk & Volatility
Evenly matched — VZ and TMUS each lead in 1 of 2 comparable metrics.
Risk & Volatility
TMUS is the less volatile stock with a -0.28 beta — it tends to amplify market swings less than VZ's -0.11 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 91.6% from its 52-week high vs TMUS's 74.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | |||
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.26x | -0.11x | -0.28x |
| 52-Week HighHighest price in past year | $29.79 | $51.68 | $261.56 |
| 52-Week LowLowest price in past year | $22.95 | $10.60 | $181.36 |
| % of 52W HighCurrent price vs 52-week peak | +87.0% | +91.6% | +74.3% |
| RSI (14)Momentum oscillator 0–100 | 44.1 | 50.1 | 46.9 |
| Avg Volume (50D)Average daily shares traded | 33.9M | 24.5M | 5.7M |
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Analyst consensus: T as "Hold", VZ as "Hold", TMUS as "Buy". Consensus price targets imply 30.7% upside for TMUS (target: $254) vs 8.9% for VZ (target: $52). For income investors, VZ offers the higher dividend yield at 5.73% vs TMUS's 1.87%.
| Metric | |||
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold | Buy |
| Price TargetConsensus 12-month target | $29.42 | $51.56 | $254.08 |
| # AnalystsCovering analysts | 62 | 60 | 54 |
| Dividend YieldAnnual dividend ÷ price | +4.4% | +5.7% | +1.9% |
| Dividend StreakConsecutive years of raises | 2 | 11 | 3 |
| Dividend / ShareAnnual DPS | $1.14 | $2.71 | $3.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.5% | 0.0% | +4.7% |
T leads in 2 of 6 categories (Income & Cash Flow, Valuation Metrics). TMUS leads in 1 (Profitability & Efficiency). 2 tied.
T vs VZ vs TMUS: Key Questions Answered
10 questions · data-driven answers · updated daily
01Is T or VZ or TMUS a better buy right now?
For growth investors, T-Mobile US, Inc.
(TMUS) is the stronger pick with 8. 5% revenue growth year-over-year, versus 2. 5% for Verizon Communications Inc. (VZ). 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 T-Mobile US, Inc. (TMUS) a "Buy" — based on 54 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 or TMUS?
On trailing P/E, AT&T Inc.
(T) is the cheapest at 8. 5x versus T-Mobile US, Inc. at 20. 0x. On forward P/E, Verizon Communications Inc. is actually cheaper at 9. 6x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — T or VZ or TMUS?
Over the past 5 years, T-Mobile US, Inc.
(TMUS) delivered a total return of +51. 0%, compared to +3. 2% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: TMUS returned +415. 9% versus VZ's +42. 8%. 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 or TMUS?
By beta (market sensitivity over 5 years), T-Mobile US, Inc.
(TMUS) is the lower-risk stock at -0. 28β versus Verizon Communications Inc. 's -0. 11β — meaning VZ is approximately -62% more volatile than TMUS relative to the S&P 500. On balance sheet safety, AT&T Inc. (T) carries a lower debt/equity ratio of 135% versus 2% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — T or VZ or TMUS?
By revenue growth (latest reported year), T-Mobile US, Inc.
(TMUS) is pulling ahead at 8. 5% 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, 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.
06Which has better profit margins — T or VZ or TMUS?
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: TMUS leads at 21. 2% versus 19. 2% for T. 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.
07Is T or VZ or TMUS more undervalued right now?
On forward earnings alone, Verizon Communications Inc.
(VZ) trades at 9. 6x forward P/E versus 18. 5x for T-Mobile US, Inc. — 8. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 30. 7% to $254. 08.
08Which pays a better dividend — T or VZ or TMUS?
All stocks in this comparison pay dividends.
Verizon Communications Inc. (VZ) offers the highest yield at 5. 7%, versus 1. 9% for T-Mobile US, Inc. (TMUS).
09Is T or 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. 28), 1. 9% yield, +415. 9% 10Y return). Both have compounded well over 10 years (TMUS: +415. 9%, VZ: +42. 8%), 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 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: T is a mid-cap deep-value stock; VZ is a mid-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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform all of them.
- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 10%
- Dividend Yield > 1.7%
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