Compare Telefônica Brasil S.A. (VIV) vs América Móvil, S.A.B. de C.V. (AMX) Stock

América Móvil, S.A.B. de C.V. (AMX) offers the better valuation at 17.4x trailing P/E (0.8x forward), making it the more compelling value choice. Analysts rate Telefônica Brasil S.A. (VIV) a "Buy" — based on 11 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, América Móvil, S.A.B. de C.V. (AMX) is the cheapest at 17.4x versus Telefônica Brasil S.A. at 25.8x. On forward P/E, América Móvil, S.A.B. de C.V. is actually cheaper at 0.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: América Móvil, S.A.B. de C.V. wins at 0.04x versus Telefônica Brasil S.A.'s 1.11x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, América Móvil, S.A.B. de C.V. (AMX) delivered a total return of +290.7%, compared to +147.3% for Telefônica Brasil S.A. (VIV). A $10,000 investment in AMX five years ago would be worth approximately $39K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AMX returned +284.0% versus VIV's +141.3%. 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), Telefônica Brasil S.A. (VIV) is the lower-risk stock at 0.30β versus América Móvil, S.A.B. de C.V.'s 0.34β — meaning AMX is approximately 13% more volatile than VIV relative to the S&P 500. On balance sheet safety, Telefônica Brasil S.A. (VIV) carries a lower debt/equity ratio of 30% versus 2% for América Móvil, S.A.B. de C.V. — giving it more financial flexibility in a downturn.

Telefônica Brasil S.A. (VIV) is the more profitable company, earning 9.9% net margin versus 8.8% for América Móvil, S.A.B. de C.V. — meaning it keeps 9.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMX leads at 21.0% versus 15.5% for VIV. At the gross margin level — before operating expenses — VIV leads at 43.9%, 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, América Móvil, S.A.B. de C.V. (AMX) is the more undervalued stock at a PEG of 0.04x versus Telefônica Brasil S.A.'s 1.11x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, América Móvil, S.A.B. de C.V. (AMX) trades at 0.8x forward P/E versus 3.0x for Telefônica Brasil S.A. — 2.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMX: -8.0% to $23.95.

All stocks in this comparison pay dividends. América Móvil, S.A.B. de C.V. (AMX) offers the highest yield at 2.3%, versus 1.8% for Telefônica Brasil S.A. (VIV).

For long-horizon retirement investors, América Móvil, S.A.B. de C.V. (AMX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.34), 2.3% yield, +284.0% 10Y return). Both have compounded well over 10 years (AMX: +284.0%, VIV: +141.3%), 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: VIV is a mid-cap quality compounder stock; AMX 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.