Comprehensive Stock Comparison
Compare T-Mobile US, Inc. (TMUS) vs AT&T Inc. (T) 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 | TMUS | 8.5% revenue growth vs T's 2.7% |
| Value | T | Lower P/E (12.3x vs 20.8x) |
| Quality / Margins | T | 17.4% net margin vs TMUS's 12.4% |
| Stability / Safety | T | Beta 0.12 vs TMUS's 0.19, lower leverage |
| Dividends | TMUS | 1.7% yield, 3-year raise streak, vs T's 4.1% |
| Momentum (1Y) | T | +6.2% vs TMUS's -17.8% |
| Efficiency (ROA) | T | 5.2% ROA vs TMUS's 5.0%, ROIC 7.0% vs 8.0% |
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
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.
AT&T is a major telecommunications company providing wireless, broadband, and enterprise connectivity services across the United States and Latin America. It generates revenue primarily from wireless services (~60% of total), broadband internet, and business solutions including cloud and security services. The company's competitive advantage lies in its extensive nationwide wireless network infrastructure and fiber footprint, which create significant switching costs for customers and high barriers to entry for competitors.
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
T leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). TMUS leads in 1 (Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
T and TMUS operate at a comparable scale, with $125.6B and $88.3B in trailing revenue. Profitability is closely matched — net margins range from 17.4% (T) to 12.4% (TMUS). On growth, TMUS holds the edge at +11.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| RevenueTrailing 12 months | $88.3B | $125.6B |
| EBITDAEarnings before interest/tax | $31.8B | $45.0B |
| Net IncomeAfter-tax profit | $11.0B | $21.9B |
| Free Cash FlowCash after capex | $10.5B | $19.4B |
| Gross MarginGross profit ÷ Revenue | +43.1% | +79.8% |
| Operating MarginEBIT ÷ Revenue | +20.7% | +19.2% |
| Net MarginNet income ÷ Revenue | +12.4% | +17.4% |
| FCF MarginFCF ÷ Revenue | +11.9% | +15.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.3% | +3.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -26.6% | -7.1% |
Valuation Metrics
At 9.2x trailing earnings, T trades at a 59% valuation discount to TMUS's 22.3x P/E. On an enterprise value basis, T's 7.4x EV/EBITDA is more attractive than TMUS's 11.1x.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| Market CapShares × price | $240.3B | $196.0B |
| Enterprise ValueMkt cap + debt − cash | $351.9B | $332.8B |
| Trailing P/EPrice ÷ TTM EPS | 22.33x | 9.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.77x | 12.26x |
| PEG RatioP/E ÷ EPS growth rate | 0.75x | — |
| EV / EBITDAEnterprise value multiple | 11.07x | 7.39x |
| Price / SalesMarket cap ÷ Revenue | 2.72x | 1.56x |
| Price / BookPrice ÷ Book value/share | 4.15x | 1.59x |
| Price / FCFMarket cap ÷ FCF | 23.23x | 10.08x |
Profitability & Efficiency
TMUS delivers a 18.6% return on equity — every $100 of shareholder capital generates $19 in annual profit, vs $17 for T. T carries lower financial leverage with a 1.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 1.98x.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +18.6% | +17.3% |
| ROA (TTM)Return on assets | +5.0% | +5.2% |
| ROICReturn on invested capital | +8.0% | +7.0% |
| ROCEReturn on capital employed | +9.6% | +6.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.98x | 1.23x |
| Net DebtTotal debt minus cash | $111.6B | $136.8B |
| Cash & Equiv.Liquid assets | $5.6B | $18.2B |
| Total DebtShort + long-term debt | $117.2B | $155.0B |
| Interest CoverageEBIT ÷ Interest expense | — | 3.55x |
Total Returns (with DRIP)
A $10,000 investment in TMUS five years ago would be worth $18,229 today (with dividends reinvested), compared to $16,283 for T. Over the past 12 months, T leads with a +6.2% total return vs TMUS's -17.8%. The 3-year compound annual growth rate (CAGR) favors T at 18.3% vs TMUS's 16.6% — a key indicator of consistent wealth creation.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +9.3% | +15.1% |
| 1-Year ReturnPast 12 months | -17.8% | +6.2% |
| 3-Year ReturnCumulative with dividends | +58.4% | +65.7% |
| 5-Year ReturnCumulative with dividends | +82.3% | +62.8% |
| 10-Year ReturnCumulative with dividends | +507.1% | +59.8% |
| CAGR (3Y)Annualised 3-year return | +16.6% | +18.3% |
Risk & Volatility
T is the less volatile stock with a 0.12 beta — it tends to amplify market swings less than TMUS's 0.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. T currently trades 94.0% from its 52-week high vs TMUS's 78.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.19x | 0.12x |
| 52-Week HighHighest price in past year | $276.49 | $29.79 |
| 52-Week LowLowest price in past year | $181.36 | $22.95 |
| % of 52W HighCurrent price vs 52-week peak | +78.5% | +94.0% |
| RSI (14)Momentum oscillator 0–100 | 56.7 | 55.6 |
| Avg Volume (50D)Average daily shares traded | 5.1M | 36.9M |
Analyst Outlook
Wall Street rates TMUS as "Buy" and T as "Hold". Consensus price targets imply 18.6% upside for TMUS (target: $257) vs 4.0% for T (target: $29). For income investors, T offers the higher dividend yield at 4.07% vs TMUS's 1.68%.
| Metric | TMUST-Mobile US, Inc. | TAT&T Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $257.42 | $29.12 |
| # AnalystsCovering analysts | 53 | 61 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +4.1% |
| Dividend StreakConsecutive years of raises | 3 | 2 |
| Dividend / ShareAnnual DPS | $3.64 | $1.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | +2.3% |
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 |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 100 | 209.01 | +109.0% |
| AT&T Inc. (T) | 100 | 93.73 | -6.3% |
T-Mobile US, Inc. (TMUS) returned +82% over 5 years vs AT&T Inc. (T)'s +63%. A $10,000 investment in TMUS 5 years ago would be worth $18,229 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | $37.5B | $88.3B | +135.6% |
| AT&T Inc. (T) | $163.8B | $125.6B | -23.3% |
T-Mobile US, Inc.'s revenue grew from $37.5B (2016) to $88.3B (2025) — a 10.0% CAGR. AT&T Inc.'s revenue grew from $163.8B (2016) to $125.6B (2025) — a -2.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 3.9% | 12.4% | +219.6% |
| AT&T Inc. (T) | 7.9% | 17.4% | +119.9% |
T-Mobile US, Inc.'s net margin went from 4% (2016) to 12% (2025). AT&T Inc.'s net margin went from 8% (2016) to 17% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 12.2 | 20.9 | +71.3% |
| AT&T Inc. (T) | 6.2 | 8.2 | +32.3% |
T-Mobile US, Inc. has traded in a 12x–68x P/E range over 9 years; current trailing P/E is ~22x. AT&T Inc. has traded in a 6x–16x P/E range over 7 years; current trailing P/E is ~9x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 1.69 | 9.72 | +475.1% |
| AT&T Inc. (T) | 2.1 | 3.04 | +44.8% |
T-Mobile US, Inc.'s EPS grew from $1.69 (2016) to $9.72 (2025) — a 21% CAGR. AT&T Inc.'s EPS grew from $2.10 (2016) to $3.04 (2025) — a 4% CAGR.
Chart 6Free Cash Flow — 5 Years
T-Mobile US, Inc. generated $10B FCF in 2025 (+233% vs 2021). AT&T Inc. generated $19B FCF in 2025 (+97% vs 2021).
TMUS vs T: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TMUS or T a better buy right now?
AT&T Inc. (T) offers the better valuation at 9.2x trailing P/E (12.3x 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 T?
On trailing P/E, AT&T Inc. (T) is the cheapest at 9.2x versus T-Mobile US, Inc. at 22.3x. On forward P/E, AT&T Inc. is actually cheaper at 12.3x.
03Which is the better long-term investment — TMUS or T?
Over the past 5 years, T-Mobile US, Inc. (TMUS) delivered a total return of +82.3%, compared to +62.8% for AT&T Inc. (T). A $10,000 investment in TMUS five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TMUS returned +507.1% versus T's +59.8%. 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 — TMUS or T?
By beta (market sensitivity over 5 years), AT&T Inc. (T) is the lower-risk stock at 0.12β versus T-Mobile US, Inc.'s 0.19β — meaning TMUS is approximately 66% more volatile than T relative to the S&P 500. On balance sheet safety, AT&T Inc. (T) carries a lower debt/equity ratio of 123% versus 198% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TMUS or T?
AT&T Inc. (T) is the more profitable company, earning 17.4% net margin versus 12.4% for T-Mobile US, Inc. — meaning it keeps 17.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TMUS leads at 20.7% versus 19.2% for T. At the gross margin level — before operating expenses — T leads at 79.8%, 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 T more undervalued right now?
On forward earnings alone, AT&T Inc. (T) trades at 12.3x forward P/E versus 20.8x for T-Mobile US, Inc. — 8.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 18.6% to $257.42.
07Which pays a better dividend — TMUS or T?
All stocks in this comparison pay dividends. AT&T Inc. (T) offers the highest yield at 4.1%, versus 1.7% for T-Mobile US, Inc. (TMUS).
08Is TMUS or T 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 0.19), 1.7% yield, +507.1% 10Y return). Both have compounded well over 10 years (TMUS: +507.1%, T: +59.8%), 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.
09What are the main differences between TMUS and T?
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; T 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.
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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 10%
- Dividend Yield > 1.6%