Telecommunications Services
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TU vs TMUS
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
TU vs TMUS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $20.01B | $209.04B |
| Revenue (TTM) | $20.51B | $90.53B |
| Net Income (TTM) | $1.11B | $10.54B |
| Gross Margin | 53.7% | 54.3% |
| Operating Margin | 11.5% | 20.4% |
| Forward P/E | 19.5x | 18.4x |
| Total Debt | $31.46B | $122.27B |
| Cash & Equiv. | $2.62B | $5.60B |
TU vs TMUS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| TELUS Corporation (TU) | 100 | 73.8 | -26.2% |
| T-Mobile US, Inc. (TMUS) | 100 | 193.1 | +93.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TU vs TMUS
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 growth exposure.
- Dividend streak 5 yrs, beta 0.11, yield 6.1%
- Rev growth 1.8%, EPS growth 7.5%, 3Y rev CAGR 3.9%
- Lower volatility, beta 0.11, current ratio 0.86x
TMUS carries the broadest edge in this set and is the clearest fit for long-term compounding.
- 409.8% 10Y total return vs TU's 45.5%
- 8.5% revenue growth vs TU's 1.8%
- Lower P/E (18.4x vs 19.5x)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.5% revenue growth vs TU's 1.8% | |
| Value | Lower P/E (18.4x vs 19.5x) | |
| Quality / Margins | 11.6% margin vs TU's 5.4% | |
| Stability / Safety | Lower D/E ratio (189.8% vs 206.5%) | |
| Dividends | 6.1% yield, 5-year raise streak, vs TMUS's 1.9% | |
| Momentum (1Y) | -8.2% vs TMUS's -22.4% | |
| Efficiency (ROA) | 4.9% ROA vs TU's 1.9%, ROIC 8.1% vs 3.9% |
TU vs TMUS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
TU vs TMUS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
TMUS leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TMUS is the larger business by revenue, generating $90.5B annually — 4.4x TU's $20.5B. TMUS is the more profitable business, keeping 11.6% of every revenue dollar as net income compared to TU's 5.4%. On growth, TMUS holds the edge at +10.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $20.5B | $90.5B |
| EBITDAEarnings before interest/tax | $7.6B | $29.9B |
| Net IncomeAfter-tax profit | $1.1B | $10.5B |
| Free Cash FlowCash after capex | $1.7B | $10.7B |
| Gross MarginGross profit ÷ Revenue | +53.7% | +54.3% |
| Operating MarginEBIT ÷ Revenue | +11.5% | +20.4% |
| Net MarginNet income ÷ Revenue | +5.4% | +11.6% |
| FCF MarginFCF ÷ Revenue | +8.1% | +11.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.1% | +10.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -25.0% | -12.0% |
Valuation Metrics
TU leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 19.9x trailing earnings, TMUS trades at a 18% valuation discount to TU's 24.2x P/E. On an enterprise value basis, TU's 8.7x EV/EBITDA is more attractive than TMUS's 10.1x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $20.0B | $209.0B |
| Enterprise ValueMkt cap + debt − cash | $41.2B | $325.7B |
| Trailing P/EPrice ÷ TTM EPS | 24.19x | 19.87x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.51x | 18.35x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.67x |
| EV / EBITDAEnterprise value multiple | 8.72x | 10.10x |
| Price / SalesMarket cap ÷ Revenue | 1.33x | 2.37x |
| Price / BookPrice ÷ Book value/share | 1.61x | 3.69x |
| Price / FCFMarket cap ÷ FCF | 11.57x | 20.21x |
Profitability & Efficiency
TMUS leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
TMUS delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $7 for TU. TU carries lower financial leverage with a 1.90x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 2.07x. On the Piotroski fundamental quality scale (0–9), TMUS scores 6/9 vs TU's 5/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +6.7% | +17.8% |
| ROA (TTM)Return on assets | +1.9% | +4.9% |
| ROICReturn on invested capital | +3.9% | +8.1% |
| ROCEReturn on capital employed | +4.8% | +9.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 1.90x | 2.07x |
| Net DebtTotal debt minus cash | $28.8B | $116.7B |
| Cash & Equiv.Liquid assets | $2.6B | $5.6B |
| Total DebtShort + long-term debt | $31.5B | $122.3B |
| Interest CoverageEBIT ÷ Interest expense | — | 5.33x |
Total Returns (Dividends Reinvested)
TMUS leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TMUS five years ago would be worth $14,496 today (with dividends reinvested), compared to $8,536 for TU. Over the past 12 months, TU leads with a -8.2% total return vs TMUS's -22.4%. The 3-year compound annual growth rate (CAGR) favors TMUS at 11.8% vs TU's -7.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +0.1% | -2.7% |
| 1-Year ReturnPast 12 months | -8.2% | -22.4% |
| 3-Year ReturnCumulative with dividends | -21.4% | +39.6% |
| 5-Year ReturnCumulative with dividends | -14.6% | +45.0% |
| 10-Year ReturnCumulative with dividends | +45.5% | +409.8% |
| CAGR (3Y)Annualised 3-year return | -7.7% | +11.8% |
Risk & Volatility
Evenly matched — TU and TMUS each lead in 1 of 2 comparable metrics.
Risk & Volatility
TMUS is the less volatile stock with a -0.28 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.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.11x | -0.28x |
| 52-Week HighHighest price in past year | $16.74 | $261.56 |
| 52-Week LowLowest price in past year | $11.69 | $181.36 |
| % of 52W HighCurrent price vs 52-week peak | +76.6% | +73.8% |
| RSI (14)Momentum oscillator 0–100 | 51.6 | 46.8 |
| Avg Volume (50D)Average daily shares traded | 5.3M | 5.6M |
Analyst Outlook
TU leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TU as "Buy" and TMUS as "Buy". Consensus price targets imply 76.2% upside for TU (target: $23) vs 31.5% for TMUS (target: $254). For income investors, TU offers the higher dividend yield at 6.09% vs TMUS's 1.89%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $22.59 | $254.08 |
| # AnalystsCovering analysts | 23 | 54 |
| Dividend YieldAnnual dividend ÷ price | +6.1% | +1.9% |
| Dividend StreakConsecutive years of raises | 5 | 3 |
| Dividend / ShareAnnual DPS | $1.06 | $3.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +4.8% |
TMUS leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TU leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
TU vs TMUS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TU or TMUS a better buy right now?
For growth investors, T-Mobile US, Inc.
(TMUS) is the stronger pick with 8. 5% revenue growth year-over-year, versus 1. 8% for TELUS Corporation (TU). T-Mobile US, Inc. (TMUS) offers the better valuation at 19. 9x trailing P/E (18. 4x 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 TMUS?
On trailing P/E, T-Mobile US, Inc.
(TMUS) is the cheapest at 19. 9x versus TELUS Corporation at 24. 2x. On forward P/E, T-Mobile US, Inc. is actually cheaper at 18. 4x.
03Which is the better long-term investment — TU or TMUS?
Over the past 5 years, T-Mobile US, Inc.
(TMUS) delivered a total return of +45. 0%, compared to -14. 6% for TELUS Corporation (TU). Over 10 years, the gap is even starker: TMUS returned +409. 8% versus TU's +45. 5%. 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 TMUS?
By beta (market sensitivity over 5 years), T-Mobile US, Inc.
(TMUS) is the lower-risk stock at -0. 28β versus TELUS Corporation's 0. 11β — meaning TU is approximately -139% more volatile than TMUS relative to the S&P 500. On balance sheet safety, TELUS Corporation (TU) carries a lower debt/equity ratio of 190% versus 2% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TU or TMUS?
By revenue growth (latest reported year), T-Mobile US, Inc.
(TMUS) is pulling ahead at 8. 5% versus 1. 8% for TELUS Corporation (TU). On earnings-per-share growth, the picture is similar: TELUS Corporation grew EPS 7. 5% year-over-year, compared to 0. 6% for T-Mobile US, Inc.. 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 TMUS?
T-Mobile US, Inc.
(TMUS) is the more profitable company, earning 12. 4% net margin versus 5. 4% for TELUS Corporation — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TMUS leads at 21. 2% versus 11. 5% for TU. At the gross margin level — before operating expenses — TMUS leads at 47. 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.
07Is TU or TMUS more undervalued right now?
On forward earnings alone, T-Mobile US, Inc.
(TMUS) trades at 18. 4x forward P/E versus 19. 5x for TELUS Corporation — 1. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TU: 76. 2% to $22. 59.
08Which pays a better dividend — TU or TMUS?
All stocks in this comparison pay dividends.
TELUS Corporation (TU) offers the highest yield at 6. 1%, versus 1. 9% for T-Mobile US, Inc. (TMUS).
09Is TU or TMUS 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. 28), 1. 9% yield, +409. 8% 10Y return). Both have compounded well over 10 years (TMUS: +409. 8%, TU: +45. 5%), 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 TMUS?
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; TMUS is a large-cap quality compounder 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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