Comprehensive Stock Comparison
Compare AT&T Inc. 5.35% GLB NTS 66 (TBB) 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 | TBB | 2.7% revenue growth vs VZ's 2.5% |
| Value | TBB | Lower P/E (9.9x vs 10.2x) |
| Quality / Margins | TBB | 17.4% net margin vs VZ's 12.4% |
| Stability / Safety | VZ | Beta 0.10 vs TBB's 0.20 |
| Dividends | VZ | 5.4% yield, 10-year raise streak, vs TBB's 5.0% |
| Momentum (1Y) | VZ | +22.7% vs TBB's +0.5% |
| Efficiency (ROA) | TBB | 5.2% ROA vs VZ's 4.3%, ROIC 7.0% 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
AT&T is a major telecommunications company providing wireless, broadband, and entertainment services primarily in the United States. It generates revenue through wireless service subscriptions (~60% of revenue), broadband and video services (~25%), and business wireline solutions (~15%). The company's competitive advantage lies in its extensive nationwide wireless network infrastructure and spectrum portfolio, which creates high barriers to entry.
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
VZ leads in 3 of 6 categories (Total Returns, Risk & Volatility). TBB leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
VZ and TBB operate at a comparable scale, with $138.5B and $125.6B in trailing revenue. Profitability is closely matched — net margins range from 17.4% (TBB) to 12.4% (VZ).
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| RevenueTrailing 12 months | $125.6B | $138.5B |
| EBITDAEarnings before interest/tax | $45.0B | $47.8B |
| Net IncomeAfter-tax profit | $21.9B | $17.2B |
| Free Cash FlowCash after capex | $19.4B | $23.1B |
| Gross MarginGross profit ÷ Revenue | +79.8% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +19.2% | +21.2% |
| Net MarginNet income ÷ Revenue | +17.4% | +12.4% |
| FCF MarginFCF ÷ Revenue | +15.5% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +3.6% | +1.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -7.1% | +50.0% |
Valuation Metrics
At 7.5x trailing earnings, TBB trades at a 40% valuation discount to VZ's 12.3x P/E. On an enterprise value basis, TBB's 6.1x EV/EBITDA is more attractive than VZ's 8.3x.
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| Market CapShares × price | $139.3B | $211.4B |
| Enterprise ValueMkt cap + debt − cash | $276.1B | $393.0B |
| Trailing P/EPrice ÷ TTM EPS | 7.46x | 12.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.93x | 10.22x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 6.13x | 8.25x |
| Price / SalesMarket cap ÷ Revenue | 1.11x | 1.53x |
| Price / BookPrice ÷ Book value/share | 1.29x | 2.01x |
| Price / FCFMarket cap ÷ FCF | 7.17x | 10.51x |
Profitability & Efficiency
TBB delivers a 17.3% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $16 for VZ. TBB carries lower financial leverage with a 1.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), TBB scores 7/9 vs VZ's 6/9, reflecting strong financial health.
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| ROE (TTM)Return on equity | +17.3% | +16.3% |
| ROA (TTM)Return on assets | +5.2% | +4.3% |
| ROICReturn on invested capital | +7.0% | +8.0% |
| ROCEReturn on capital employed | +6.8% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 1.23x | 1.90x |
| Net DebtTotal debt minus cash | $136.8B | $181.5B |
| Cash & Equiv.Liquid assets | $18.2B | $19.0B |
| Total DebtShort + long-term debt | $155.0B | $200.6B |
| Interest CoverageEBIT ÷ Interest expense | 3.55x | 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 $11,351 for TBB. Over the past 12 months, VZ leads with a +22.7% total return vs TBB's +0.5%. The 3-year compound annual growth rate (CAGR) favors VZ at 14.5% vs TBB's 4.4% — a key indicator of consistent wealth creation.
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| YTD ReturnYear-to-date | +2.0% | +25.4% |
| 1-Year ReturnPast 12 months | +0.5% | +22.7% |
| 3-Year ReturnCumulative with dividends | +13.7% | +49.9% |
| 5-Year ReturnCumulative with dividends | +13.5% | +14.4% |
| 10-Year ReturnCumulative with dividends | +33.6% | +48.3% |
| CAGR (3Y)Annualised 3-year return | +4.4% | +14.5% |
Risk & Volatility
VZ is the less volatile stock with a 0.10 beta — it tends to amplify market swings less than TBB's 0.20 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 99.3% from its 52-week high vs TBB's 93.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.20x | 0.10x |
| 52-Week HighHighest price in past year | $24.16 | $50.48 |
| 52-Week LowLowest price in past year | $21.55 | $10.60 |
| % of 52W HighCurrent price vs 52-week peak | +93.9% | +99.3% |
| RSI (14)Momentum oscillator 0–100 | 57.6 | 66.9 |
| Avg Volume (50D)Average daily shares traded | 71K | 28.1M |
Analyst Outlook
Wall Street rates TBB as "Hold" and VZ as "Hold". Consensus price targets imply -1.6% upside for VZ (target: $49) vs -6.2% for TBB (target: $21). For income investors, VZ offers the higher dividend yield at 5.41% vs TBB's 5.02%.
| Metric | TBBAT&T Inc. 5.35% G… | VZVerizon Communica… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $21.29 | $49.36 |
| # AnalystsCovering analysts | 9 | 60 |
| Dividend YieldAnnual dividend ÷ price | +5.0% | +5.4% |
| Dividend StreakConsecutive years of raises | 2 | 10 |
| Dividend / ShareAnnual DPS | $1.14 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.2% | 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 |
|---|---|---|---|
| AT&T Inc. 5.35% GLB… (TBB) | 100 | 86.76 | -13.2% |
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
Verizon Communicati… (VZ) returned +14% over 5 years vs AT&T Inc. 5.35% GLB… (TBB)'s +14%. 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 |
|---|---|---|---|
| AT&T Inc. 5.35% GLB… (TBB) | $163.8B | $125.6B | -23.3% |
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
AT&T Inc. 5.35% GLB NTS 66's revenue grew from $163.8B (2016) to $125.6B (2025) — a -2.9% CAGR. 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 |
|---|---|---|---|
| AT&T Inc. 5.35% GLB… (TBB) | 7.9% | 17.4% | +119.9% |
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
AT&T Inc. 5.35% GLB NTS 66's net margin went from 8% (2016) to 17% (2025). Verizon Communications Inc.'s net margin went from 10% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| AT&T Inc. 5.35% GLB… (TBB) | 5.5 | 7.3 | +32.7% |
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
AT&T Inc. 5.35% GLB NTS 66 has traded in a 6x–16x P/E range over 7 years; current trailing P/E is ~7x. 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 |
|---|---|---|---|
| AT&T Inc. 5.35% GLB… (TBB) | 2.1 | 3.04 | +44.8% |
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
AT&T Inc. 5.35% GLB NTS 66's EPS grew from $2.10 (2016) to $3.04 (2025) — a 4% CAGR. Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
AT&T Inc. 5.35% GLB NTS 66 generated $19B FCF in 2025 (+97% vs 2021). Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021).
TBB vs VZ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TBB or VZ a better buy right now?
AT&T Inc. 5.35% GLB NTS 66 (TBB) offers the better valuation at 7.5x trailing P/E (9.9x forward), making it the more compelling value choice. Analysts rate AT&T Inc. 5.35% GLB NTS 66 (TBB) a "Hold" — based on 9 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 — TBB or VZ?
On trailing P/E, AT&T Inc. 5.35% GLB NTS 66 (TBB) is the cheapest at 7.5x versus Verizon Communications Inc. at 12.3x. On forward P/E, AT&T Inc. 5.35% GLB NTS 66 is actually cheaper at 9.9x.
03Which is the better long-term investment — TBB or VZ?
Over the past 5 years, Verizon Communications Inc. (VZ) delivered a total return of +14.4%, compared to +13.5% for AT&T Inc. 5.35% GLB NTS 66 (TBB). 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 TBB's +33.6%. 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 — TBB or VZ?
By beta (market sensitivity over 5 years), Verizon Communications Inc. (VZ) is the lower-risk stock at 0.10β versus AT&T Inc. 5.35% GLB NTS 66's 0.20β — meaning TBB is approximately 99% more volatile than VZ relative to the S&P 500. On balance sheet safety, AT&T Inc. 5.35% GLB NTS 66 (TBB) carries a lower debt/equity ratio of 123% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TBB or VZ?
AT&T Inc. 5.35% GLB NTS 66 (TBB) 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 19.2% for TBB. At the gross margin level — before operating expenses — TBB 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 TBB or VZ more undervalued right now?
On forward earnings alone, AT&T Inc. 5.35% GLB NTS 66 (TBB) trades at 9.9x forward P/E versus 10.2x for Verizon Communications Inc. — 0.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VZ: -1.6% to $49.36.
07Which pays a better dividend — TBB or VZ?
All stocks in this comparison pay dividends. Verizon Communications Inc. (VZ) offers the highest yield at 5.4%, versus 5.0% for AT&T Inc. 5.35% GLB NTS 66 (TBB).
08Is TBB 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 0.10), 5.4% yield). Both have compounded well over 10 years (VZ: +48.3%, TBB: +33.6%), 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 TBB 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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- Sector: Communication Services
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- Net Margin > 7%
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