Comprehensive Stock Comparison
Compare Telefónica, S.A. (TEF) 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 | VZ | 2.5% revenue growth vs TEF's 1.6% |
| Value | VZ | Lower P/E (10.2x vs 12.8x) |
| Quality / Margins | VZ | 12.4% net margin vs TEF's -5.5% |
| Stability / Safety | VZ | Beta 0.10 vs TEF's 0.11, lower leverage |
| Dividends | TEF | 8.5% yield, vs VZ's 5.4% |
| Momentum (1Y) | VZ | +22.7% vs TEF's +5.3% |
| Efficiency (ROA) | VZ | 4.3% ROA vs TEF's -2.3%, ROIC 8.0% vs 2.9% |
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
Telefónica is a multinational telecommunications company providing mobile, fixed-line, and broadband services across Europe and Latin America. It generates revenue primarily from mobile services (~50% of total), fixed-line telephony (~25%), and broadband/data services (~20%), with the remainder from wholesale and enterprise solutions. The company's moat lies in its extensive physical infrastructure—including fiber networks and mobile towers—and its established market positions in key Spanish-speaking regions.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
VZ leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). TEF leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
VZ is the larger business by revenue, generating $138.5B 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 +1.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| RevenueTrailing 12 months | $38.3B | $138.5B |
| EBITDAEarnings before interest/tax | $12.3B | $47.8B |
| Net IncomeAfter-tax profit | -$2.1B | $17.2B |
| Free Cash FlowCash after capex | $4.0B | $23.1B |
| Gross MarginGross profit ÷ Revenue | +83.7% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +6.9% | +21.2% |
| Net MarginNet income ÷ Revenue | -5.5% | +12.4% |
| FCF MarginFCF ÷ Revenue | +10.5% | +16.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -6.6% | +1.5% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +50.0% |
Valuation Metrics
On an enterprise value basis, TEF's 5.2x EV/EBITDA is more attractive than VZ's 8.3x.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| Market CapShares × price | $24.4B | $211.4B |
| Enterprise ValueMkt cap + debt − cash | $68.0B | $393.0B |
| Trailing P/EPrice ÷ TTM EPS | -65.09x | 12.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.75x | 10.22x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.15x | 8.25x |
| Price / SalesMarket cap ÷ Revenue | 0.50x | 1.53x |
| Price / BookPrice ÷ Book value/share | 0.91x | 2.01x |
| Price / FCFMarket cap ÷ FCF | 3.98x | 10.51x |
Profitability & Efficiency
VZ delivers a 16.3% 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.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| ROE (TTM)Return on equity | -9.9% | +16.3% |
| ROA (TTM)Return on assets | -2.3% | +4.3% |
| ROICReturn on invested capital | +2.9% | +8.0% |
| ROCEReturn on capital employed | +3.1% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| 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 | 4.37x |
Total Returns (with DRIP)
A $10,000 investment in TEF five years ago would be worth $13,474 today (with dividends reinvested), compared to $11,437 for VZ. Over the past 12 months, VZ leads with a +22.7% total return vs TEF's +5.3%. The 3-year compound annual growth rate (CAGR) favors VZ at 14.5% vs TEF's 8.9% — a key indicator of consistent wealth creation.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| YTD ReturnYear-to-date | +8.3% | +25.4% |
| 1-Year ReturnPast 12 months | +5.3% | +22.7% |
| 3-Year ReturnCumulative with dividends | +29.0% | +49.9% |
| 5-Year ReturnCumulative with dividends | +34.7% | +14.4% |
| 10-Year ReturnCumulative with dividends | -13.3% | +48.3% |
| CAGR (3Y)Annualised 3-year return | +8.9% | +14.5% |
Risk & Volatility
VZ is the less volatile stock with a 0.10 beta — it tends to amplify market swings less than TEF's 0.11 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 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 | 0.11x | 0.10x |
| 52-Week HighHighest price in past year | $5.72 | $50.48 |
| 52-Week LowLowest price in past year | $3.67 | $10.60 |
| % of 52W HighCurrent price vs 52-week peak | +75.7% | +99.3% |
| RSI (14)Momentum oscillator 0–100 | 70.2 | 66.9 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 28.1M |
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 5.41%.
| Metric | TEFTelefónica, S.A. | VZVerizon Communica… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | — | $49.36 |
| # AnalystsCovering analysts | 20 | 60 |
| Dividend YieldAnnual dividend ÷ price | +8.5% | +5.4% |
| Dividend StreakConsecutive years of raises | 0 | 10 |
| Dividend / ShareAnnual DPS | $0.31 | $2.71 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 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 |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 100 | 66.89 | -33.1% |
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
Telefónica, S.A. (TEF) returned +35% over 5 years vs Verizon Communicati… (VZ)'s +14%. A $10,000 investment in TEF 5 years ago would be worth $13,474 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | $52.0B | $41.3B | -20.6% |
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
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 |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 4.6% | -0.1% | -102.6% |
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
Verizon Communications Inc.'s net margin went from 10% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 17.3 | 11.5 | -33.5% |
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
Telefónica, S.A. has traded in a 3x–22x P/E range over 6 years; current trailing P/E is ~-65x. 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 |
|---|---|---|---|
| Telefónica, S.A. (TEF) | 0.42 | -0.06 | -113.4% |
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
Telefónica, S.A. generated $5B FCF in 2024 (+24% vs 2021). Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021).
TEF vs VZ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TEF or VZ a better buy right now?
Verizon Communications Inc. (VZ) offers the better valuation at 12.3x trailing P/E (10.2x 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 10.2x.
03Which is the better long-term investment — TEF or VZ?
Over the past 5 years, Telefónica, S.A. (TEF) delivered a total return of +34.7%, compared to +14.4% for Verizon Communications Inc. (VZ). A $10,000 investment in TEF five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: VZ returned +48.3% versus TEF's -13.3%. 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 — TEF or VZ?
By beta (market sensitivity over 5 years), Verizon Communications Inc. (VZ) is the lower-risk stock at 0.10β versus Telefónica, S.A.'s 0.11β — meaning TEF is approximately 9% 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 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.
06Is TEF or VZ more undervalued right now?
On forward earnings alone, Verizon Communications Inc. (VZ) trades at 10.2x forward P/E versus 12.8x for Telefónica, S.A. — 2.5x cheaper on a one-year earnings basis.
07Which 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 5.4% for Verizon Communications Inc. (VZ).
08Is 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 0.10), 5.4% yield). Both have compounded well over 10 years (VZ: +48.3%, TEF: -13.3%), 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.
09What 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 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.
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- Sector: Communication Services
- Market Cap > $100B
- Gross Margin > 50%
- Dividend Yield > 3.3%
- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 7%
- Dividend Yield > 2.1%