Telecommunications Services
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VZ vs SHEN
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
VZ vs SHEN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $200.09B | $897M |
| Revenue (TTM) | $138.19B | $266M |
| Net Income (TTM) | $17.17B | $-36M |
| Gross Margin | 55.7% | 37.9% |
| Operating Margin | 21.2% | -10.3% |
| Forward P/E | 9.6x | — |
| Total Debt | $200.59B | $642M |
| Cash & Equiv. | $19.05B | $27M |
VZ vs SHEN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Verizon Communicati… (VZ) | 100 | 82.7 | -17.3% |
| Shenandoah Telecomm… (SHEN) | 100 | 30.8 | -69.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VZ vs SHEN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VZ carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 11 yrs, beta -0.11, yield 5.7%
- 42.2% 10Y total return vs SHEN's 21.7%
- Lower volatility, beta -0.11, current ratio 0.91x
SHEN is the clearest fit if your priority is growth exposure.
- Rev growth 9.1%, EPS growth -120.1%, 3Y rev CAGR 12.9%
- 9.1% revenue growth vs VZ's 2.5%
- Lower D/E ratio (66.2% vs 189.7%)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 9.1% revenue growth vs VZ's 2.5% | |
| Quality / Margins | 12.4% margin vs SHEN's -13.7% | |
| Stability / Safety | Lower D/E ratio (66.2% vs 189.7%) | |
| Dividends | 5.7% yield, 11-year raise streak, vs SHEN's 0.7% | |
| Momentum (1Y) | +39.2% vs VZ's +13.7% | |
| Efficiency (ROA) | 4.4% ROA vs SHEN's -2.0%, ROIC 8.0% vs -1.1% |
VZ vs SHEN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VZ vs SHEN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
VZ leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VZ is the larger business by revenue, generating $138.2B annually — 519.0x SHEN's $266M. VZ is the more profitable business, keeping 12.4% of every revenue dollar as net income compared to SHEN's -13.7%. On growth, VZ holds the edge at +2.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $138.2B | $266M |
| EBITDAEarnings before interest/tax | $47.6B | $104M |
| Net IncomeAfter-tax profit | $17.2B | -$36M |
| Free Cash FlowCash after capex | $19.8B | -$276M |
| Gross MarginGross profit ÷ Revenue | +55.7% | +37.9% |
| Operating MarginEBIT ÷ Revenue | +21.2% | -10.3% |
| Net MarginNet income ÷ Revenue | +12.4% | -13.7% |
| FCF MarginFCF ÷ Revenue | +14.3% | -103.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.0% | -100.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -53.4% | -18.2% |
Valuation Metrics
Evenly matched — VZ and SHEN each lead in 2 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, VZ's 8.0x EV/EBITDA is more attractive than SHEN's 13.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $200.1B | $897M |
| Enterprise ValueMkt cap + debt − cash | $381.6B | $1.5B |
| Trailing P/EPrice ÷ TTM EPS | 11.68x | -22.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.59x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 8.02x | 13.80x |
| Price / SalesMarket cap ÷ Revenue | 1.45x | 2.51x |
| Price / BookPrice ÷ Book value/share | 1.90x | 0.92x |
| Price / FCFMarket cap ÷ FCF | 9.94x | — |
Profitability & Efficiency
VZ leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
VZ delivers a 16.4% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-4 for SHEN. SHEN carries lower financial leverage with a 0.66x debt-to-equity ratio, signaling a more conservative balance sheet compared to VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), VZ scores 4/9 vs SHEN's 3/9, reflecting mixed financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +16.4% | -3.7% |
| ROA (TTM)Return on assets | +4.4% | -2.0% |
| ROICReturn on invested capital | +8.0% | -1.1% |
| ROCEReturn on capital employed | +8.8% | -1.3% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 3 |
| Debt / EquityFinancial leverage | 1.90x | 0.66x |
| Net DebtTotal debt minus cash | $181.5B | $614M |
| Cash & Equiv.Liquid assets | $19.0B | $27M |
| Total DebtShort + long-term debt | $200.6B | $642M |
| Interest CoverageEBIT ÷ Interest expense | 4.39x | -0.65x |
Total Returns (Dividends Reinvested)
VZ leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in VZ five years ago would be worth $10,237 today (with dividends reinvested), compared to $7,127 for SHEN. Over the past 12 months, SHEN leads with a +39.2% total return vs VZ's +13.7%. The 3-year compound annual growth rate (CAGR) favors VZ at 13.7% vs SHEN's -4.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +20.5% | +43.4% |
| 1-Year ReturnPast 12 months | +13.7% | +39.2% |
| 3-Year ReturnCumulative with dividends | +46.8% | -13.7% |
| 5-Year ReturnCumulative with dividends | +2.4% | -28.7% |
| 10-Year ReturnCumulative with dividends | +42.2% | +21.7% |
| CAGR (3Y)Annualised 3-year return | +13.7% | -4.8% |
Risk & Volatility
Evenly matched — VZ and SHEN each lead in 1 of 2 comparable metrics.
Risk & Volatility
VZ is the less volatile stock with a -0.11 beta — it tends to amplify market swings less than SHEN's 0.89 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 | 0.89x |
| 52-Week HighHighest price in past year | $51.68 | $17.34 |
| 52-Week LowLowest price in past year | $10.60 | $9.66 |
| % of 52W HighCurrent price vs 52-week peak | +91.8% | +93.5% |
| RSI (14)Momentum oscillator 0–100 | 48.5 | 53.8 |
| Avg Volume (50D)Average daily shares traded | 24.4M | 299K |
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VZ as "Hold" and SHEN as "Buy". Consensus price targets imply 78.8% upside for SHEN (target: $29) vs 8.7% for VZ (target: $52). For income investors, VZ offers the higher dividend yield at 5.72% vs SHEN's 0.72%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $51.56 | $29.00 |
| # AnalystsCovering analysts | 60 | 8 |
| Dividend YieldAnnual dividend ÷ price | +5.7% | +0.7% |
| Dividend StreakConsecutive years of raises | 11 | 3 |
| Dividend / ShareAnnual DPS | $2.71 | $0.12 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
VZ leads in 4 of 6 categories — strongest in Income & Cash Flow and Profitability & Efficiency. 2 categories are tied.
VZ vs SHEN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VZ or SHEN a better buy right now?
For growth investors, Shenandoah Telecommunications Company (SHEN) is the stronger pick with 9.
1% revenue growth year-over-year, versus 2. 5% for Verizon Communications Inc. (VZ). Verizon Communications Inc. (VZ) offers the better valuation at 11. 7x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate Shenandoah Telecommunications Company (SHEN) a "Buy" — based on 8 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 is the better long-term investment — VZ or SHEN?
Over the past 5 years, Verizon Communications Inc.
(VZ) delivered a total return of +2. 4%, compared to -28. 7% for Shenandoah Telecommunications Company (SHEN). Over 10 years, the gap is even starker: VZ returned +42. 2% versus SHEN's +21. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — VZ or SHEN?
By beta (market sensitivity over 5 years), Verizon Communications Inc.
(VZ) is the lower-risk stock at -0. 11β versus Shenandoah Telecommunications Company's 0. 89β — meaning SHEN is approximately -934% more volatile than VZ relative to the S&P 500. On balance sheet safety, Shenandoah Telecommunications Company (SHEN) carries a lower debt/equity ratio of 66% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — VZ or SHEN?
By revenue growth (latest reported year), Shenandoah Telecommunications Company (SHEN) is pulling ahead at 9.
1% versus 2. 5% for Verizon Communications Inc. (VZ). On earnings-per-share growth, the picture is similar: Verizon Communications Inc. grew EPS -2. 2% year-over-year, compared to -120. 1% for Shenandoah Telecommunications Company. Over a 3-year CAGR, SHEN leads at 12. 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.
05Which has better profit margins — VZ or SHEN?
Verizon Communications Inc.
(VZ) is the more profitable company, earning 12. 4% net margin versus -11. 0% for Shenandoah Telecommunications Company — meaning it keeps 12. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VZ leads at 21. 2% versus -6. 2% for SHEN. At the gross margin level — before operating expenses — VZ leads at 45. 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.
06Is VZ or SHEN more undervalued right now?
Analyst consensus price targets imply the most upside for SHEN: 78.
8% to $29. 00.
07Which pays a better dividend — VZ or SHEN?
All stocks in this comparison pay dividends.
Verizon Communications Inc. (VZ) offers the highest yield at 5. 7%, versus 0. 7% for Shenandoah Telecommunications Company (SHEN).
08Is VZ or SHEN better for a retirement portfolio?
For long-horizon retirement investors, Verizon Communications Inc.
(VZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 11), 5. 7% yield). Both have compounded well over 10 years (VZ: +42. 2%, SHEN: +21. 7%), 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 VZ and SHEN?
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: VZ is a large-cap deep-value stock; SHEN is a small-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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- Sector: Communication Services
- Market Cap > $100B
- Gross Margin > 22%
- Dividend Yield > 0.5%
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