Telecommunications Services
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TU vs T
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
TU vs T — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $20.13B | $176.40B |
| Revenue (TTM) | $20.51B | $126.52B |
| Net Income (TTM) | $1.11B | $21.41B |
| Gross Margin | 53.7% | 79.7% |
| Operating Margin | 11.5% | 19.4% |
| Forward P/E | 19.6x | 10.9x |
| Total Debt | $31.46B | $173.99B |
| Cash & Equiv. | $2.62B | $18.23B |
TU vs T — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| TELUS Corporation (TU) | 100 | 74.3 | -25.7% |
| AT&T Inc. (T) | 100 | 108.5 | +8.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TU vs T
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TU is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 5 yrs, beta 0.11, yield 6.0%
- 46.2% 10Y total return vs T's 41.9%
- Beta 0.11, yield 6.0%, current ratio 0.86x
T carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth 2.7%, EPS growth 104.0%, 3Y rev CAGR 1.3%
- Lower volatility, beta -0.26, current ratio 0.91x
- 2.7% revenue growth vs TU's 1.8%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.7% revenue growth vs TU's 1.8% | |
| Value | Lower P/E (10.9x vs 19.6x) | |
| Quality / Margins | 16.9% margin vs TU's 5.4% | |
| Stability / Safety | Lower D/E ratio (135.4% vs 189.8%) | |
| Dividends | 6.0% yield, 5-year raise streak, vs T's 4.5% | |
| Momentum (1Y) | -6.1% vs T's -6.2% | |
| Efficiency (ROA) | 5.1% ROA vs TU's 1.9%, ROIC 6.7% vs 3.9% |
TU vs T — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
TU vs T — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
T leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
T is the larger business by revenue, generating $126.5B annually — 6.2x TU's $20.5B. T is the more profitable business, keeping 16.9% of every revenue dollar as net income compared to TU's 5.4%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $20.5B | $126.5B |
| EBITDAEarnings before interest/tax | $7.6B | $45.1B |
| Net IncomeAfter-tax profit | $1.1B | $21.4B |
| Free Cash FlowCash after capex | $1.7B | $10.6B |
| Gross MarginGross profit ÷ Revenue | +53.7% | +79.7% |
| Operating MarginEBIT ÷ Revenue | +11.5% | +19.4% |
| Net MarginNet income ÷ Revenue | +5.4% | +16.9% |
| FCF MarginFCF ÷ Revenue | +8.1% | +8.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.1% | +2.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -25.0% | -11.5% |
Valuation Metrics
T leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 8.3x trailing earnings, T trades at a 66% valuation discount to TU's 24.4x P/E. On an enterprise value basis, T's 7.4x EV/EBITDA is more attractive than TU's 8.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $20.1B | $176.4B |
| Enterprise ValueMkt cap + debt − cash | $41.3B | $332.2B |
| Trailing P/EPrice ÷ TTM EPS | 24.44x | 8.31x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.63x | 10.93x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 8.77x | 7.37x |
| Price / SalesMarket cap ÷ Revenue | 1.34x | 1.40x |
| Price / BookPrice ÷ Book value/share | 1.63x | 1.41x |
| Price / FCFMarket cap ÷ FCF | 11.68x | 9.07x |
Profitability & Efficiency
T leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
T delivers a 16.8% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $7 for TU. T carries lower financial leverage with a 1.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to TU's 1.90x. On the Piotroski fundamental quality scale (0–9), T scores 7/9 vs TU's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +6.7% | +16.8% |
| ROA (TTM)Return on assets | +1.9% | +5.1% |
| ROICReturn on invested capital | +3.9% | +6.7% |
| ROCEReturn on capital employed | +4.8% | +6.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.90x | 1.35x |
| Net DebtTotal debt minus cash | $28.8B | $155.8B |
| Cash & Equiv.Liquid assets | $2.6B | $18.2B |
| Total DebtShort + long-term debt | $31.5B | $174.0B |
| Interest CoverageEBIT ÷ Interest expense | — | 4.97x |
Total Returns (Dividends Reinvested)
T leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in T five years ago would be worth $12,995 today (with dividends reinvested), compared to $8,496 for TU. Over the past 12 months, TU leads with a -6.1% total return vs T's -6.2%. The 3-year compound annual growth rate (CAGR) favors T at 18.6% vs TU's -7.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +0.7% | +5.1% |
| 1-Year ReturnPast 12 months | -6.1% | -6.2% |
| 3-Year ReturnCumulative with dividends | -21.0% | +67.0% |
| 5-Year ReturnCumulative with dividends | -15.0% | +29.9% |
| 10-Year ReturnCumulative with dividends | +46.2% | +41.9% |
| CAGR (3Y)Annualised 3-year return | -7.6% | +18.6% |
Risk & Volatility
T leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
T is the less volatile stock with a -0.26 beta — it tends to amplify market swings less than TU's 0.11 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. T currently trades 84.8% from its 52-week high vs TU's 77.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.11x | -0.26x |
| 52-Week HighHighest price in past year | $16.74 | $29.79 |
| 52-Week LowLowest price in past year | $11.69 | $22.95 |
| % of 52W HighCurrent price vs 52-week peak | +77.0% | +84.8% |
| RSI (14)Momentum oscillator 0–100 | 57.8 | 38.9 |
| Avg Volume (50D)Average daily shares traded | 5.3M | 33.7M |
Analyst Outlook
TU leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TU as "Buy" and T as "Hold". Consensus price targets imply 75.2% upside for TU (target: $23) vs 16.5% for T (target: $29). For income investors, TU offers the higher dividend yield at 6.03% vs T's 4.51%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $22.59 | $29.42 |
| # AnalystsCovering analysts | 23 | 62 |
| Dividend YieldAnnual dividend ÷ price | +6.0% | +4.5% |
| Dividend StreakConsecutive years of raises | 5 | 2 |
| Dividend / ShareAnnual DPS | $1.06 | $1.14 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +2.6% |
T leads in 5 of 6 categories (Income & Cash Flow, Valuation Metrics). TU leads in 1 (Analyst Outlook).
TU vs T: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TU or T a better buy right now?
For growth investors, AT&T Inc.
(T) is the stronger pick with 2. 7% revenue growth year-over-year, versus 1. 8% for TELUS Corporation (TU). AT&T Inc. (T) offers the better valuation at 8. 3x trailing P/E (10. 9x forward), making it the more compelling value choice. Analysts rate TELUS Corporation (TU) a "Buy" — based on 23 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 — TU or T?
On trailing P/E, AT&T Inc.
(T) is the cheapest at 8. 3x versus TELUS Corporation at 24. 4x. On forward P/E, AT&T Inc. is actually cheaper at 10. 9x.
03Which is the better long-term investment — TU or T?
Over the past 5 years, AT&T Inc.
(T) delivered a total return of +29. 9%, compared to -15. 0% for TELUS Corporation (TU). Over 10 years, the gap is even starker: TU returned +46. 2% versus T's +41. 9%. 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 — TU or T?
By beta (market sensitivity over 5 years), AT&T Inc.
(T) is the lower-risk stock at -0. 26β versus TELUS Corporation's 0. 11β — meaning TU is approximately -142% 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 135% versus 190% for TELUS Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — TU or T?
By revenue growth (latest reported year), AT&T Inc.
(T) is pulling ahead at 2. 7% versus 1. 8% for TELUS Corporation (TU). On earnings-per-share growth, the picture is similar: AT&T Inc. grew EPS 104. 0% year-over-year, compared to 7. 5% for TELUS Corporation. Over a 3-year CAGR, TU leads at 3. 9% 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 — TU or T?
AT&T Inc.
(T) is the more profitable company, earning 17. 4% net margin versus 5. 4% for TELUS Corporation — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: T leads at 19. 2% versus 11. 5% for TU. 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.
07Is TU or T more undervalued right now?
On forward earnings alone, AT&T Inc.
(T) trades at 10. 9x forward P/E versus 19. 6x for TELUS Corporation — 8. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TU: 75. 2% to $22. 59.
08Which pays a better dividend — TU or T?
All stocks in this comparison pay dividends.
TELUS Corporation (TU) offers the highest yield at 6. 0%, versus 4. 5% for AT&T Inc. (T).
09Is TU or T better for a retirement portfolio?
For long-horizon retirement investors, AT&T Inc.
(T) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 26), 4. 5% yield). Both have compounded well over 10 years (T: +41. 9%, TU: +46. 2%), 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 TU 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: TU is a mid-cap income-oriented 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 > 1.8%
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