TEF
Telefónica, S.A.
Telecommunications Services
Market Cap$24.41B
5Y Perf.-9.0%
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Stock Comparison
TEF vs VZ
Revenue, margins, valuation, and 5-year total return — side by side.
VZ
Verizon Communications Inc.
Telecommunications Services
Market Cap$199.66B
5Y Perf.-22.4%
TEF vs VZ — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TEF | VZ |
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $24.41B | $199.66B |
| Revenue (TTM) | $38.27B | $138.19B |
| Net Income (TTM) | $-2.12B | $17.17B |
| Gross Margin | 83.7% | 55.7% |
| Operating Margin | 6.9% | 21.2% |
| Forward P/E | 12.5x | 9.6x |
| Total Debt | $45.02B | $200.59B |
| Cash & Equiv. | $8.06B | $19.05B |
TEF vs VZ — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TEF
VZ
| Stock | May 20 | Feb 26 | Return |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 100 | 91.0 | -9.0% |
| Verizon Communicati… (VZ) | 100 | 77.6 | -22.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TEF vs VZ
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: VZ leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Telefónica, S.A. is the stronger pick specifically for dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
TEF
Telefónica, S.A.
The Income Pick
TEF is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.16, yield 8.5%
- Rev growth 1.6%, EPS growth 71.8%, 3Y rev CAGR 1.7%
- Beta 0.16, yield 8.5%, current ratio 0.87x
Best for: income & stability and growth exposure
VZ
Verizon Communications Inc.
The Long-Run Compounder
VZ carries the broadest edge in this set and is the clearest fit for long-term compounding and sleep-well-at-night.
- 42.8% 10Y total return vs TEF's -16.8%
- Lower volatility, beta -0.11, current ratio 0.91x
- 2.5% revenue growth vs TEF's 1.6%
Best for: long-term compounding and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | VZ | 2.5% revenue growth vs TEF's 1.6% |
| Value | VZ | Lower P/E (9.6x vs 12.5x) |
| Quality / Margins | VZ | 12.4% margin vs TEF's -5.5% |
| Stability / Safety | VZ | Lower D/E ratio (189.7% vs 197.9%) |
| Dividends | TEF | 8.5% yield, vs VZ's 5.7% |
| Momentum (1Y) | VZ | +15.1% vs TEF's -6.6% |
| Efficiency (ROA) | VZ | 4.4% ROA vs TEF's -2.3%, ROIC 8.0% vs 2.9% |
TEF vs VZ — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
TEF vs VZ — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLVZLAGGINGTEF
TEFTelefónica, S.A.
1leads
VZVerizon Communication…
4leads
6 Total Categories
CATEGORYLEADERvs TEFMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
VZ4/5
Valuation MetricsMultiples, price ratios, and targets
TEF5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
VZ6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
VZ5/6
Risk & VolatilityBeta, volatility, and downside exposure
VZ2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
VZ leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
VZ is the larger business by revenue, generating $138.2B annually — 3.6x TEF's $38.3B. VZ is the more profitable business, keeping 12.4% of every revenue dollar as net income compared to TEF's -5.5%. On growth, VZ holds the edge at +2.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| RevenueTrailing 12 months | $38.3B | $138.2B |
| EBITDAEarnings before interest/tax | $12.3B | $47.6B |
| Net IncomeAfter-tax profit | -$2.1B | $17.2B |
| Free Cash FlowCash after capex | $4.0B | $19.8B |
| Gross MarginGross profit ÷ Revenue | +83.7% | +55.7% |
| Operating MarginEBIT ÷ Revenue | +6.9% | +21.2% |
| Net MarginNet income ÷ Revenue | -5.5% | +12.4% |
| FCF MarginFCF ÷ Revenue | +10.5% | +14.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -6.6% | +2.0% |
| EPS Growth (YoY)Latest quarter vs prior year | — | -53.4% |
VZ leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
TEF leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
On an enterprise value basis, TEF's 5.2x EV/EBITDA is more attractive than VZ's 8.0x.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| Market CapShares × price | $24.4B | $199.7B |
| Enterprise ValueMkt cap + debt − cash | $68.0B | $381.2B |
| Trailing P/EPrice ÷ TTM EPS | -65.09x | 11.66x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.47x | 9.57x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.15x | 8.01x |
| Price / SalesMarket cap ÷ Revenue | 0.50x | 1.44x |
| Price / BookPrice ÷ Book value/share | 0.91x | 1.89x |
| Price / FCFMarket cap ÷ FCF | 3.98x | 9.92x |
TEF leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
VZ leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
VZ delivers a 16.4% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-10 for TEF. VZ carries lower financial leverage with a 1.90x debt-to-equity ratio, signaling a more conservative balance sheet compared to TEF's 1.98x. On the Piotroski fundamental quality scale (0–9), TEF scores 6/9 vs VZ's 4/9, reflecting solid financial health.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| ROE (TTM)Return on equity | -9.9% | +16.4% |
| ROA (TTM)Return on assets | -2.3% | +4.4% |
| ROICReturn on invested capital | +2.9% | +8.0% |
| ROCEReturn on capital employed | +3.1% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 1.98x | 1.90x |
| Net DebtTotal debt minus cash | $37.0B | $181.5B |
| Cash & Equiv.Liquid assets | $8.1B | $19.0B |
| Total DebtShort + long-term debt | $45.0B | $200.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.80x | 4.39x |
VZ leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
VZ leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TEF five years ago would be worth $12,638 today (with dividends reinvested), compared to $10,325 for VZ. Over the past 12 months, VZ leads with a +15.1% total return vs TEF's -6.6%. The 3-year compound annual growth rate (CAGR) favors VZ at 13.6% vs TEF's 6.6% — a key indicator of consistent wealth creation.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| YTD ReturnYear-to-date | +8.3% | +20.3% |
| 1-Year ReturnPast 12 months | -6.6% | +15.1% |
| 3-Year ReturnCumulative with dividends | +21.3% | +46.6% |
| 5-Year ReturnCumulative with dividends | +26.4% | +3.2% |
| 10-Year ReturnCumulative with dividends | -16.8% | +42.8% |
| CAGR (3Y)Annualised 3-year return | +6.6% | +13.6% |
VZ leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
VZ leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
VZ is the less volatile stock with a -0.11 beta — it tends to amplify market swings less than TEF's 0.16 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 TEF's 75.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.16x | -0.11x |
| 52-Week HighHighest price in past year | $5.72 | $51.68 |
| 52-Week LowLowest price in past year | $3.67 | $10.60 |
| % of 52W HighCurrent price vs 52-week peak | +75.7% | +91.6% |
| RSI (14)Momentum oscillator 0–100 | 70.2 | 50.1 |
| Avg Volume (50D)Average daily shares traded | 516K | 24.5M |
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — TEF and VZ each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TEF as "Buy" and VZ as "Hold". For income investors, TEF offers the higher dividend yield at 8.50% vs VZ's 5.73%.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | — | $51.56 |
| # AnalystsCovering analysts | 20 | 60 |
| Dividend YieldAnnual dividend ÷ price | +8.5% | +5.7% |
| Dividend StreakConsecutive years of raises | 0 | 11 |
| Dividend / ShareAnnual DPS | $0.31 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Evenly matched — TEF and VZ each lead in 1 of 2 comparable metrics.
Key Takeaway
VZ leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TEF leads in 1 (Valuation Metrics). 1 tied.
Best OverallVerizon Communications Inc. (VZ)Leads 4 of 6 categories
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TEF vs VZ: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TEF or VZ a better buy right now?
For growth investors, Verizon Communications Inc.
(VZ) is the stronger pick with 2. 5% revenue growth year-over-year, versus 1. 6% for Telefónica, S. A. (TEF). 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 Telefónica, S. A. (TEF) a "Buy" — based on 20 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 — TEF or VZ?
On forward P/E, Verizon Communications Inc.
is actually cheaper at 9. 6x.
03Which is the better long-term investment — TEF or VZ?
Over the past 5 years, Telefónica, S.
A. (TEF) delivered a total return of +26. 4%, compared to +3. 2% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: VZ returned +42. 8% versus TEF's -16. 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 — TEF or VZ?
By beta (market sensitivity over 5 years), Verizon Communications Inc.
(VZ) is the lower-risk stock at -0. 11β versus Telefónica, S. A. 's 0. 16β — meaning TEF is approximately -250% more volatile than VZ relative to the S&P 500. On balance sheet safety, Verizon Communications Inc. (VZ) carries a lower debt/equity ratio of 190% versus 198% for Telefónica, S. A. — giving it more financial flexibility in a downturn.
05Which is growing faster — TEF or VZ?
By revenue growth (latest reported year), Verizon Communications Inc.
(VZ) is pulling ahead at 2. 5% versus 1. 6% for Telefónica, S. A. (TEF). On earnings-per-share growth, the picture is similar: Telefónica, S. A. grew EPS 71. 8% year-over-year, compared to -2. 2% for Verizon Communications Inc.. Over a 3-year CAGR, TEF leads at 1. 7% 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 — TEF or VZ?
Verizon Communications Inc.
(VZ) is the more profitable company, earning 12. 4% net margin versus -0. 1% for Telefónica, S. A. — 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. 8% for TEF. At the gross margin level — before operating expenses — TEF leads at 69. 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 TEF or VZ more undervalued right now?
On forward earnings alone, Verizon Communications Inc.
(VZ) trades at 9. 6x forward P/E versus 12. 5x for Telefónica, S. A. — 2. 9x cheaper on a one-year earnings basis.
08Which pays a better dividend — TEF or VZ?
All stocks in this comparison pay dividends.
Telefónica, S. A. (TEF) offers the highest yield at 8. 5%, versus 5. 7% for Verizon Communications Inc. (VZ).
09Is TEF 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. 11), 5. 7% yield). Both have compounded well over 10 years (VZ: +42. 8%, TEF: -16. 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 TEF 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.
In terms of investment character: TEF is a mid-cap income-oriented stock; VZ is a mid-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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
- Sector: Communication Services
- Market Cap > $100B
- Gross Margin > 50%
- Dividend Yield > 3.3%
Revenue Growth>
%
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