TDS vs VZ

For growth investors, Verizon Communications Inc.

(VZ) is the stronger pick with 2. 5% revenue growth year-over-year, versus -75. 3% for Telephone and Data Systems, Inc. (TDS). Verizon Communications Inc. (VZ) offers the better valuation at 11. 7x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate Telephone and Data Systems, Inc. (TDS) a "Buy" — based on 7 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.

Over the past 5 years, Telephone and Data Systems, Inc.

(TDS) delivered a total return of +133. 4%, compared to +2. 4% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: TDS returned +129. 7% versus VZ's +42. 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), Verizon Communications Inc.

(VZ) is the lower-risk stock at -0. 11β versus Telephone and Data Systems, Inc. 's 0. 64β — meaning TDS is approximately -700% more volatile than VZ relative to the S&P 500. On balance sheet safety, Telephone and Data Systems, Inc. (TDS) carries a lower debt/equity ratio of 37% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Verizon Communications Inc.

(VZ) is pulling ahead at 2. 5% versus -75. 3% for Telephone and Data Systems, Inc. (TDS). On earnings-per-share growth, the picture is similar: Telephone and Data Systems, Inc. grew EPS 22. 4% year-over-year, compared to -2. 2% for Verizon Communications Inc.. Over a 3-year CAGR, VZ leads at 0. 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.

Verizon Communications Inc.

(VZ) is the more profitable company, earning 12. 4% net margin versus -0. 5% for Telephone and Data Systems, Inc. — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VZ leads at 21. 2% versus -5. 0% for TDS. At the gross margin level — before operating expenses — VZ leads at 45. 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.

Analyst consensus price targets imply the most upside for VZ: 8.

7% to $51. 56.

All stocks in this comparison pay dividends.

Verizon Communications Inc. (VZ) offers the highest yield at 5. 7%, versus 1. 7% for Telephone and Data Systems, Inc. (TDS).

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. 11), 5. 7% yield). Both have compounded well over 10 years (VZ: +42. 2%, TDS: +129. 7%), 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.

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: TDS is a small-cap quality compounder stock; VZ is a large-cap deep-value 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.