TMUS vs NFLX

For growth investors, Netflix, Inc.

(NFLX) is the stronger pick with 15. 9% revenue growth year-over-year, versus 8. 5% for T-Mobile US, Inc. (TMUS). T-Mobile US, Inc. (TMUS) offers the better valuation at 20. 0x trailing P/E (18. 5x forward), making it the more compelling value choice. Analysts rate T-Mobile US, Inc. (TMUS) a "Buy" — based on 54 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.

On trailing P/E, T-Mobile US, Inc.

(TMUS) is the cheapest at 20. 0x versus Netflix, Inc. at 34. 7x. On forward P/E, T-Mobile US, Inc. is actually cheaper at 18. 5x. 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. 62x versus Netflix, Inc. 's 0. 75x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Netflix, Inc.

(NFLX) delivered a total return of +77. 2%, compared to +51. 0% for T-Mobile US, Inc. (TMUS). Over 10 years, the gap is even starker: NFLX returned +883. 1% versus TMUS's +415. 9%. 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), T-Mobile US, Inc.

(TMUS) is the lower-risk stock at -0. 28β versus Netflix, Inc. 's 0. 39β — meaning NFLX is approximately -239% 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 2% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Netflix, Inc.

(NFLX) is pulling ahead at 15. 9% versus 8. 5% for T-Mobile US, Inc. (TMUS). On earnings-per-share growth, the picture is similar: Netflix, Inc. grew EPS 27. 6% year-over-year, compared to 0. 6% for T-Mobile US, Inc.. Over a 3-year CAGR, NFLX leads at 12. 6% 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.

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 21. 2% 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.

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. 62x versus Netflix, Inc. 's 0. 75x. 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 18. 5x forward P/E versus 24. 7x for Netflix, Inc. — 6. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 32. 3% to $116. 29.

In this comparison, TMUS (1.

9% yield) pays a dividend. NFLX does not pay a meaningful dividend and should not be held primarily for income.

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. 28), 1. 9% yield, +415. 9% 10Y return). Both have compounded well over 10 years (TMUS: +415. 9%, NFLX: +883. 1%), 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: TMUS is a large-cap quality compounder stock; NFLX is a large-cap high-growth stock. 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.