TMUS vs VZ Stock Comparison: AI Score, Valuation, Performance and Upside
T-Mobile and Verizon represent the growth and value ends of the US wireless market. T-Mobile is the subscriber growth engine — taking market share consistently and building a 5G network that is outperforming Verizon in independent speed tests. Verizon is the more income-oriented carrier with a premium brand and expanding broadband strategy, but has been on the wrong end of the subscriber gain/loss equation for several years.
T-Mobile is the better growth investment for investors who believe its 5G network advantage and Un-carrier value proposition will continue taking wireless share; Verizon suits income investors who want maximum dividend yield and believe the network quality premium will sustain in the long run.
TMUS holds the edge across 3 of 5 key metrics in this comparison. VZ leads on both 1-year return (+10.45%) and forward P/E quality (8.88x vs 11.96x for TMUS), a relatively favorable combination of momentum and valuation. TMUS leads on both revenue growth (7.90%) and operating margin (25.22%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for TMUS (+40.74%) than for VZ (+10.14%).
- →want the fastest-growing US wireless carrier with the leading 5G mid-band coverage footprint
- →believe Sprint synergies and fixed wireless broadband expansion will sustain free cash flow compounding
- →prefer growth over near-term yield — TMUS has historically reinvested rather than paying high dividends
- →value management's track record of consistently delivering against ambitious operational targets
- →prioritize maximum dividend yield from the US's largest wireless carrier
- →believe Verizon's network quality premium will retain high-value subscribers despite share losses
- →see value in the Frontier acquisition as a long-term broadband expansion catalyst
- →prefer the stability of an income-oriented telecom over a faster-growing but less yield-focused carrier
| Metric | TMUS | VZ |
|---|---|---|
| AI score | 50.2 | 40.8 |
| AI rank | #468 | #996 |
| Latest close | $177.09 | $47.36 |
| 1M return | -0.24% | +11.28% |
| 6M return | -9.18% | +6.16% |
| 1Y return | -25.34% | +10.45% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TMUS | VZ |
|---|---|---|
| 1Y ago | $7.35K (-26.5%) started 2025-08-04 | $11.03K (+10.3%) started 2025-08-04 |
| 5Y ago | $13.05K (+30.5%) started 2021-08-05 | $14.07K (+40.7%) started 2021-08-05 |
| 10Y ago | $38.76K (+287.6%) started 2016-08-05 | $24.76K (+147.6%) started 2016-08-05 |
Hypothetical — past performance does not guarantee future results.
| Metric | TMUS | VZ |
|---|---|---|
| Market cap | $185.26B | $195.46B |
| Trailing P/E | 18.05 | 12.19 |
| Forward P/E | 11.96 | 8.88 |
| Price/Sales | 3.38 | 1.36 |
| EV/Revenue | 3.29 | 2.79 |
| Analyst target | $243.08 | $51.56 |
| Target upside | +40.74% | +10.14% |
| Metric | TMUS | VZ |
|---|---|---|
| Revenue growth | 7.90% | -0.70% |
| Earnings growth | 5.30% | -22.00% |
| EPS growth | +5.30% | -22.00% |
| FCF margin | +12.30% | +12.58% |
| Operating margin | 25.22% | 23.00% |
| Profit margin | 11.46% | 11.64% |
| ROIC proxy | 17.99% | 15.84% |
| Return on equity | 17.99% | 15.84% |
| Dividend yield | 2.36% | 6.05% |
| Beta | 0.32 | 0.24 |
| Debt/equity | 214.03 | 184.08 |
| Current ratio | 0.92 | 0.60 |
| Quick ratio | 0.58 | 0.46 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TMUS | VZ |
|---|---|---|---|
| 1Y | Growth | -26.52% | +10.27% |
| CAGR | -26.57% | +10.29% | |
| Sharpe ratio | -1.09 | 0.34 | |
| Max drawdown | 35.24% | 18.28% | |
| Max daily drop | 10.75% | 5.24% | |
| Max wkly drop | 11.63% | 9.60% | |
| 5Y | Growth | +27.59% | +8.22% |
| CAGR | +5.00% | +1.59% | |
| Sharpe ratio | 0.14 | -0.02 | |
| Max drawdown | 38.52% | 38.38% | |
| Max daily drop | 11.22% | 7.50% | |
| Max wkly drop | 11.63% | 12.88% | |
| 10Y | Growth | +279.01% | +39.29% |
| CAGR | +14.26% | +3.37% | |
| Sharpe ratio | 0.47 | 0.05 | |
| Max drawdown | 38.52% | 41.21% | |
| Max daily drop | 11.22% | 7.50% | |
| Max wkly drop | 14.58% | 12.88% |
| Category | TMUS | VZ |
|---|---|---|
| Company | T-Mobile US, Inc. | Verizon Communications Inc. |
| Sector | Communication Services | Communication Services |
| Industry | Telecom Services | Telecom Services |
| Core business | T-Mobile is the US wireless market leader in postpaid subscriber additions, having executed a dramatic market share gain through the Sprint merger (2020) and aggressive 'Un-carrier' pricing and value propositions. Its 5G network coverage — built on the 2.5 GHz mid-band spectrum acquired with Sprint — is widely regarded as the most comprehensive and highest-performing in the US. T-Mobile is now expanding into broadband (fixed wireless access), enterprise wireless, and international via partnerships. | Verizon is the US's largest wireless carrier by total connections, with a network quality reputation built over decades supporting premium pricing. It is executing a broadband expansion strategy through Fios fiber in the Northeast, fixed wireless access (FWA) via its C-band 5G spectrum, and the pending Frontier Communications acquisition to expand its national fiber footprint significantly. |
| Investor focus | Investors track postpaid phone net adds (T-Mobile has led the industry for several consecutive years), average revenue per user (ARPU) expansion as it moves up-market, fixed wireless access broadband additions, and Sprint merger synergy delivery. | Investors track postpaid phone net adds and churn trends, ARPU, fixed wireless access broadband additions, and the Frontier acquisition integration impact on fiber revenue and debt. |
- →Industry-leading 5G mid-band coverage giving T-Mobile a meaningful network performance advantage
- →Consistent #1 postpaid phone net adds across multiple years demonstrating durable market share gains
- →Sprint merger synergies exceeded original targets, delivering higher-than-expected free cash flow
- →Premium network quality reputation retains high-value postpaid customers who accept higher ARPU
- →C-band 5G spectrum provides fixed wireless competitive positioning in markets without fiber
- →Frontier acquisition will expand national fiber footprint to 25M+ locations
- →Market share gains may slow as the low-hanging fruit of disaffected AT&T and Verizon customers has been captured
- →Fixed wireless broadband market share could face competition as Verizon and AT&T expand fiber
- →Founder CEO Mike Sievert faces the challenge of sustaining growth after the transformative Sprint integration
- →Consistent postpaid phone net add losses to T-Mobile for multiple years
- →High dividend payout ratio constraining reinvestment capacity
- →Frontier acquisition adds near-term debt and integration execution risk
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.