Comprehensive Stock Comparison
Compare T-Mobile US, Inc. (TMUS) vs Netflix, Inc. (NFLX) 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 | NFLX | 15.9% revenue growth vs TMUS's 8.5% |
| Value | TMUS | Lower P/E (20.9x vs 26.4x), PEG 0.70 vs 0.80 |
| Quality / Margins | NFLX | 24.3% net margin vs TMUS's 12.4% |
| Stability / Safety | TMUS | Beta 0.20 vs NFLX's 0.78 |
| Dividends | TMUS | 1.7% yield; 3-year raise streak; NFLX pays no meaningful dividend |
| Momentum (1Y) | TMUS | -15.7% vs NFLX's -16.5% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs TMUS's 5.0%, ROIC 29.8% vs 8.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
T-Mobile US is a major wireless telecommunications carrier providing mobile voice, messaging, and data services to consumers and businesses. It generates revenue primarily from postpaid and prepaid service plans—roughly 80% of total revenue—with the remainder coming from device sales and equipment installment plans. The company's key competitive advantage is its extensive 5G network—the largest in the U.S.—which it built through strategic spectrum acquisitions and the Sprint merger.
Netflix is a global streaming entertainment service that offers original and licensed TV shows, movies, and documentaries. It generates revenue primarily through subscription fees — with three pricing tiers — and earns additional income from licensing its original content to other platforms. Its key advantage is its massive scale and data-driven content creation, which allows it to invest billions in programming that attracts and retains subscribers worldwide.
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
NFLX leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). TMUS leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
TMUS is the larger business by revenue, generating $88.3B annually — 2.0x NFLX's $45.2B. NFLX is the more profitable business, keeping 24.3% of every revenue dollar as net income compared to TMUS's 12.4%. On growth, NFLX holds the edge at +17.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $88.3B | $45.2B |
| EBITDAEarnings before interest/tax | $31.8B | $30.1B |
| Net IncomeAfter-tax profit | $11.0B | $11.0B |
| Free Cash FlowCash after capex | $10.5B | $9.5B |
| Gross MarginGross profit ÷ Revenue | +43.1% | +48.5% |
| Operating MarginEBIT ÷ Revenue | +20.7% | +29.5% |
| Net MarginNet income ÷ Revenue | +12.4% | +24.3% |
| FCF MarginFCF ÷ Revenue | +11.9% | +20.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.3% | +17.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -26.6% | +31.1% |
Valuation Metrics
At 22.5x trailing earnings, TMUS trades at a 31% valuation discount to NFLX's 32.7x P/E. Adjusting for growth (PEG ratio), TMUS offers better value at 0.76x vs NFLX's 0.99x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Market CapShares × price | $242.0B | $350.4B |
| Enterprise ValueMkt cap + debt − cash | $353.7B | $355.9B |
| Trailing P/EPrice ÷ TTM EPS | 22.50x | 32.69x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.92x | 26.43x |
| PEG RatioP/E ÷ EPS growth rate | 0.76x | 0.99x |
| EV / EBITDAEnterprise value multiple | 11.13x | 11.83x |
| Price / SalesMarket cap ÷ Revenue | 2.74x | 7.76x |
| Price / BookPrice ÷ Book value/share | 4.18x | 13.41x |
| Price / FCFMarket cap ÷ FCF | 23.40x | 37.04x |
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $19 for TMUS. NFLX carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 1.98x.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +18.6% | +41.3% |
| ROA (TTM)Return on assets | +5.0% | +19.8% |
| ROICReturn on invested capital | +8.0% | +29.8% |
| ROCEReturn on capital employed | +9.6% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.98x | 0.54x |
| Net DebtTotal debt minus cash | $111.6B | $5.4B |
| Cash & Equiv.Liquid assets | $5.6B | $9.0B |
| Total DebtShort + long-term debt | $117.2B | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | — | 17.33x |
Total Returns (with DRIP)
A $10,000 investment in TMUS five years ago would be worth $18,821 today (with dividends reinvested), compared to $15,346 for NFLX. Over the past 12 months, TMUS leads with a -15.7% total return vs NFLX's -16.5%. The 3-year compound annual growth rate (CAGR) favors NFLX at 36.8% vs TMUS's 16.1% — a key indicator of consistent wealth creation.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +9.6% | -9.1% |
| 1-Year ReturnPast 12 months | -15.7% | -16.5% |
| 3-Year ReturnCumulative with dividends | +56.7% | +156.0% |
| 5-Year ReturnCumulative with dividends | +88.2% | +53.5% |
| 10-Year ReturnCumulative with dividends | +502.6% | +772.4% |
| CAGR (3Y)Annualised 3-year return | +16.1% | +36.8% |
Risk & Volatility
TMUS is the less volatile stock with a 0.20 beta — it tends to amplify market swings less than NFLX's 0.78 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TMUS currently trades 79.1% from its 52-week high vs NFLX's 61.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.20x | 0.78x |
| 52-Week HighHighest price in past year | $276.49 | $134.12 |
| 52-Week LowLowest price in past year | $181.36 | $75.01 |
| % of 52W HighCurrent price vs 52-week peak | +79.1% | +61.7% |
| RSI (14)Momentum oscillator 0–100 | 69.4 | 40.6 |
| Avg Volume (50D)Average daily shares traded | 5.6M | 41.3M |
Analyst Outlook
Wall Street rates TMUS as "Buy" and NFLX as "Buy". Consensus price targets imply 41.8% upside for NFLX (target: $117) vs 17.7% for TMUS (target: $257). TMUS is the only dividend payer here at 1.67% yield — a key consideration for income-focused portfolios.
| Metric | TMUST-Mobile US, Inc. | NFLXNetflix, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $257.42 | $117.25 |
| # AnalystsCovering analysts | 53 | 97 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | — |
| Dividend StreakConsecutive years of raises | 3 | — |
| Dividend / ShareAnnual DPS | $3.64 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +4.1% | +2.6% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 100 | 208.21 | +108.2% |
| Netflix, Inc. (NFLX) | 100 | 218.25 | +118.2% |
T-Mobile US, Inc. (TMUS) returned +88% over 5 years vs Netflix, Inc. (NFLX)'s +53%. A $10,000 investment in TMUS 5 years ago would be worth $18,821 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | $37.5B | $88.3B | +135.6% |
| Netflix, Inc. (NFLX) | $8.8B | $45.2B | +411.7% |
T-Mobile US, Inc.'s revenue grew from $37.5B (2016) to $88.3B (2025) — a 10.0% CAGR. Netflix, Inc.'s revenue grew from $8.8B (2016) to $45.2B (2025) — a 19.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 3.9% | 12.4% | +219.6% |
| Netflix, Inc. (NFLX) | 2.1% | 24.3% | +1049.7% |
T-Mobile US, Inc.'s net margin went from 4% (2016) to 12% (2025). Netflix, Inc.'s net margin went from 2% (2016) to 24% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 12.2 | 20.9 | +71.3% |
| Netflix, Inc. (NFLX) | 153.6 | 37.1 | -75.8% |
T-Mobile US, Inc. has traded in a 12x–68x P/E range over 9 years; current trailing P/E is ~22x. Netflix, Inc. has traded in a 30x–154x P/E range over 9 years; current trailing P/E is ~33x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 1.69 | 9.72 | +475.1% |
| Netflix, Inc. (NFLX) | 0.04 | 2.53 | +5783.7% |
T-Mobile US, Inc.'s EPS grew from $1.69 (2016) to $9.72 (2025) — a 21% CAGR. Netflix, Inc.'s EPS grew from $0.04 (2016) to $2.53 (2025) — a 57% CAGR.
Chart 6Free Cash Flow — 5 Years
T-Mobile US, Inc. generated $10B FCF in 2025 (+233% vs 2021). Netflix, Inc. generated $9B FCF in 2025 (+7269% vs 2021).
TMUS vs NFLX: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TMUS or NFLX a better buy right now?
T-Mobile US, Inc. (TMUS) offers the better valuation at 22.5x trailing P/E (20.9x forward), making it the more compelling value choice. Analysts rate T-Mobile US, Inc. (TMUS) a "Buy" — based on 53 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 — TMUS or NFLX?
On trailing P/E, T-Mobile US, Inc. (TMUS) is the cheapest at 22.5x versus Netflix, Inc. at 32.7x. On forward P/E, T-Mobile US, Inc. is actually cheaper at 20.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: T-Mobile US, Inc. wins at 0.70x versus Netflix, Inc.'s 0.80x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — TMUS or NFLX?
Over the past 5 years, T-Mobile US, Inc. (TMUS) delivered a total return of +88.2%, compared to +53.5% for Netflix, Inc. (NFLX). A $10,000 investment in TMUS five years ago would be worth approximately $19K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NFLX returned +772.4% versus TMUS's +502.6%. 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 — TMUS or NFLX?
By beta (market sensitivity over 5 years), T-Mobile US, Inc. (TMUS) is the lower-risk stock at 0.20β versus Netflix, Inc.'s 0.78β — meaning NFLX is approximately 283% more volatile than TMUS relative to the S&P 500. On balance sheet safety, Netflix, Inc. (NFLX) carries a lower debt/equity ratio of 54% versus 198% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TMUS or NFLX?
Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus 12.4% for T-Mobile US, Inc. — meaning it keeps 24.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NFLX leads at 29.5% versus 20.7% for TMUS. At the gross margin level — before operating expenses — NFLX leads at 48.5%, 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 TMUS or NFLX more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, T-Mobile US, Inc. (TMUS) is the more undervalued stock at a PEG of 0.70x versus Netflix, Inc.'s 0.80x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, T-Mobile US, Inc. (TMUS) trades at 20.9x forward P/E versus 26.4x for Netflix, Inc. — 5.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 41.8% to $117.25.
07Which pays a better dividend — TMUS or NFLX?
In this comparison, TMUS (1.7% yield) pays a dividend. NFLX does not pay a meaningful dividend and should not be held primarily for income.
08Is TMUS or NFLX 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 0.20), 1.7% yield, +502.6% 10Y return). Both have compounded well over 10 years (TMUS: +502.6%, NFLX: +772.4%), 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 TMUS and NFLX?
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. TMUS pays a dividend while NFLX does not, making them suitable for different income and tax situations. 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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