Telecommunications Services
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VZ vs T
Revenue, margins, valuation, and 5-year total return — side by side.
Telecommunications Services
VZ vs T — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Telecommunications Services |
| Market Cap | $199.66B | $181.06B |
| Revenue (TTM) | $138.19B | $126.52B |
| Net Income (TTM) | $17.17B | $21.41B |
| Gross Margin | 55.7% | 79.7% |
| Operating Margin | 21.2% | 19.4% |
| Forward P/E | 9.6x | 11.2x |
| Total Debt | $200.59B | $173.99B |
| Cash & Equiv. | $19.05B | $18.23B |
VZ vs T — 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% |
| AT&T Inc. (T) | 100 | 112.3 | +12.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: VZ vs T
Each card shows where this stock fits in a portfolio — not just who wins on paper.
VZ is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 11 yrs, beta -0.11, yield 5.7%
- Lower volatility, beta -0.11, current ratio 0.91x
- Beta -0.11, yield 5.7%, current ratio 0.91x
T carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 2.7%, EPS growth 104.0%, 3Y rev CAGR 1.3%
- 44.6% 10Y total return vs VZ's 42.8%
- 2.7% revenue growth vs VZ's 2.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.7% revenue growth vs VZ's 2.5% | |
| Value | Lower P/E (9.6x vs 11.2x) | |
| Quality / Margins | 16.9% margin vs VZ's 12.4% | |
| Stability / Safety | Lower D/E ratio (135.4% vs 189.7%) | |
| Dividends | 5.7% yield, 11-year raise streak, vs T's 4.4% | |
| Momentum (1Y) | +15.1% vs T's -1.7% | |
| Efficiency (ROA) | 5.1% ROA vs VZ's 4.4%, ROIC 6.7% vs 8.0% |
VZ vs T — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
VZ 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 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
VZ and T operate at a comparable scale, with $138.2B and $126.5B in trailing revenue. Profitability is closely matched — net margins range from 16.9% (T) to 12.4% (VZ).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $138.2B | $126.5B |
| EBITDAEarnings before interest/tax | $47.6B | $45.1B |
| Net IncomeAfter-tax profit | $17.2B | $21.4B |
| Free Cash FlowCash after capex | $19.8B | $10.6B |
| Gross MarginGross profit ÷ Revenue | +55.7% | +79.7% |
| Operating MarginEBIT ÷ Revenue | +21.2% | +19.4% |
| Net MarginNet income ÷ Revenue | +12.4% | +16.9% |
| FCF MarginFCF ÷ Revenue | +14.3% | +8.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.0% | +2.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -53.4% | -11.5% |
Valuation Metrics
T leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 8.5x trailing earnings, T trades at a 27% valuation discount to VZ's 11.7x P/E. On an enterprise value basis, T's 7.5x EV/EBITDA is more attractive than VZ's 8.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $199.7B | $181.1B |
| Enterprise ValueMkt cap + debt − cash | $381.2B | $336.8B |
| Trailing P/EPrice ÷ TTM EPS | 11.66x | 8.53x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.57x | 11.22x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 8.01x | 7.48x |
| Price / SalesMarket cap ÷ Revenue | 1.44x | 1.44x |
| Price / BookPrice ÷ Book value/share | 1.89x | 1.45x |
| Price / FCFMarket cap ÷ FCF | 9.92x | 9.31x |
Profitability & Efficiency
T leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
T delivers a 16.8% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $16 for VZ. T carries lower financial leverage with a 1.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), T scores 7/9 vs VZ's 4/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +16.4% | +16.8% |
| ROA (TTM)Return on assets | +4.4% | +5.1% |
| ROICReturn on invested capital | +8.0% | +6.7% |
| ROCEReturn on capital employed | +8.8% | +6.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 1.90x | 1.35x |
| Net DebtTotal debt minus cash | $181.5B | $155.8B |
| Cash & Equiv.Liquid assets | $19.0B | $18.2B |
| Total DebtShort + long-term debt | $200.6B | $174.0B |
| Interest CoverageEBIT ÷ Interest expense | 4.39x | 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 $13,319 today (with dividends reinvested), compared to $10,325 for VZ. Over the past 12 months, VZ leads with a +15.1% total return vs T's -1.7%. The 3-year compound annual growth rate (CAGR) favors T at 19.5% vs VZ's 13.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +20.3% | +7.8% |
| 1-Year ReturnPast 12 months | +15.1% | -1.7% |
| 3-Year ReturnCumulative with dividends | +46.6% | +70.8% |
| 5-Year ReturnCumulative with dividends | +3.2% | +33.2% |
| 10-Year ReturnCumulative with dividends | +42.8% | +44.6% |
| CAGR (3Y)Annualised 3-year return | +13.6% | +19.5% |
Risk & Volatility
Evenly matched — VZ and T each lead in 1 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 VZ's -0.11 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 91.6% from its 52-week high vs T's 87.0% 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 | $51.68 | $29.79 |
| 52-Week LowLowest price in past year | $10.60 | $22.95 |
| % of 52W HighCurrent price vs 52-week peak | +91.6% | +87.0% |
| RSI (14)Momentum oscillator 0–100 | 50.1 | 44.1 |
| Avg Volume (50D)Average daily shares traded | 24.5M | 33.9M |
Analyst Outlook
VZ leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates VZ as "Hold" and T as "Hold". Consensus price targets imply 13.5% upside for T (target: $29) vs 8.9% for VZ (target: $52). For income investors, VZ offers the higher dividend yield at 5.73% vs T's 4.39%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $51.56 | $29.42 |
| # AnalystsCovering analysts | 60 | 62 |
| Dividend YieldAnnual dividend ÷ price | +5.7% | +4.4% |
| Dividend StreakConsecutive years of raises | 11 | 2 |
| Dividend / ShareAnnual DPS | $2.71 | $1.14 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.5% |
T leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). VZ leads in 1 (Analyst Outlook). 1 tied.
VZ vs T: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is VZ 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 2. 5% for Verizon Communications Inc. (VZ). AT&T Inc. (T) offers the better valuation at 8. 5x trailing P/E (11. 2x forward), making it the more compelling value choice. Analysts rate Verizon Communications Inc. (VZ) a "Hold" — based on 60 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 — VZ or T?
On trailing P/E, AT&T Inc.
(T) is the cheapest at 8. 5x versus Verizon Communications Inc. at 11. 7x. On forward P/E, Verizon Communications Inc. is actually cheaper at 9. 6x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — VZ or T?
Over the past 5 years, AT&T Inc.
(T) delivered a total return of +33. 2%, compared to +3. 2% for Verizon Communications Inc. (VZ). Over 10 years, the gap is even starker: T returned +44. 6% versus VZ's +42. 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 — VZ or T?
By beta (market sensitivity over 5 years), AT&T Inc.
(T) is the lower-risk stock at -0. 26β versus Verizon Communications Inc. 's -0. 11β — meaning VZ is approximately -59% 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 Verizon Communications Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — VZ or T?
By revenue growth (latest reported year), AT&T Inc.
(T) is pulling ahead at 2. 7% versus 2. 5% for Verizon Communications Inc. (VZ). On earnings-per-share growth, the picture is similar: AT&T Inc. grew EPS 104. 0% year-over-year, compared to -2. 2% for Verizon Communications Inc.. Over a 3-year CAGR, T leads at 1. 3% 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 — VZ or T?
AT&T Inc.
(T) is the more profitable company, earning 17. 4% net margin versus 12. 4% for Verizon Communications Inc. — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: VZ leads at 21. 2% 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.
07Is VZ or T more undervalued right now?
On forward earnings alone, Verizon Communications Inc.
(VZ) trades at 9. 6x forward P/E versus 11. 2x for AT&T Inc. — 1. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for T: 13. 5% to $29. 42.
08Which pays a better dividend — VZ or T?
All stocks in this comparison pay dividends.
Verizon Communications Inc. (VZ) offers the highest yield at 5. 7%, versus 4. 4% for AT&T Inc. (T).
09Is VZ 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. 4% yield). Both have compounded well over 10 years (T: +44. 6%, VZ: +42. 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.
10What are the main differences between VZ 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.
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 > 1.7%
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