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VZ
Verizon Communications Inc. · Telecommunications
$46.47
+10.46% this month
VERSUS
⟷
COMPARE
TMUS
T-Mobile US, Inc. · Telecommunications
$173.46
-4.58% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
VZ
2
TMUS
3
Comparison scoreboard
TMUS LEADS 3/5AI Score
VZ 40.8
TMUS ✓50.2
1Y Return
VZ ✓+8.91%
TMUS -27.40%
Fwd P/E
VZ ✓8.88
TMUS 11.96
Target Up.
VZ +10.14%
TMUS ✓+40.74%
Op. Margin
VZ 23.00%
TMUS ✓25.22%
Metrics last refreshed: 8/6/2026
Quick take
VZ vs TMUS Stock Comparison: AI Score, Valuation, Performance and Upside
VZ and TMUS are the two most compelling US wireless telecom investment cases — Verizon for income investors wanting the highest dividend yield with stable revenues; T-Mobile for growth investors wanting the best 5G network and subscriber momentum. T-Mobile has consistently outperformed Verizon on subscriber growth, network quality, and stock returns since the Sprint merger. Verizon offers materially higher dividend yield for income-focused investors willing to accept slower growth.
VZ vs TMUS — Verizon (the highest-yielding large-cap telecom with stable revenues and 6-7% dividend yield but T-Mobile subscriber pressure) versus T-Mobile (the industry-leading 5G network with strongest subscriber growth, fixed wireless internet expansion, and share buyback program at a growth premium valuation).
Live analysis · updated 8/6/2026
TMUS holds the edge across 3 of 5 key metrics in this comparison. VZ leads on both 1-year return (+8.91%) 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%).
Normalized 1Y performance
VZ
TMUS
Recent returns
VZ
TMUS
Analyst price targets & sentiment
VZ · 23 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.3/5.0)
Price target range
analyst low$42.00
analyst high$56.00
analyst mean$51.56
current price$46.47
+10.1% upside to analyst mean
TMUS · 27 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.1/5.0)
Price target range
analyst low$202.99
analyst high$305.00
analyst mean$243.08
current price$173.46
+40.7% upside to analyst mean
Who should consider this stock?
VZ may suit investors who:
- →prioritize dividend income from a stable large-cap telecommunications company — Verizon's 6-7% yield is one of the highest among investment-grade companies and well-covered by free cash flow
- →want defensive telecom exposure with Verizon's enterprise and government contract base providing revenue stability less dependent on consumer wireless promotional cycles
- →prefer Verizon's lower valuation multiple vs T-Mobile's growth premium — Verizon trades at a discount reflecting subscriber pressure headwinds
- →are comfortable with T-Mobile's subscriber momentum taking net adds at Verizon's expense and wireline business secular decline continuing
TMUS may suit investors who:
- →want the best US 5G network investment — T-Mobile's 2.5GHz mid-band spectrum creates a sustainable network quality advantage that consistently beats Verizon in independent testing
- →value subscriber growth momentum: T-Mobile gaining postpaid subscribers consistently creates revenue growth that compounds over time vs Verizon's subscriber pressure
- →see fixed wireless access home internet as a transformational new market — T-Mobile's 5G home internet is disrupting cable's broadband dominance in millions of US homes
- →are comfortable with a higher valuation premium for growth and less dividend yield than Verizon, with Deutsche Telekom majority ownership limiting T-Mobile's independent M&A flexibility
Performance & AI score
| Metric | VZ | TMUS |
|---|---|---|
| AI score | 40.8 | 50.2 |
| AI rank | #996 | #468 |
| Latest close | $46.47 | $173.46 |
| 1M return | +10.46% | -4.58% |
| 6M return | -1.15% | -14.04% |
| 1Y return | +8.91% | -27.40% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VZ | TMUS |
|---|---|---|
| 1Y ago | $10.97K (+9.7%) started 2025-08-06 | $7.25K (-27.5%) started 2025-08-06 |
| 5Y ago | $13.85K (+38.5%) started 2021-08-09 | $12.68K (+26.8%) started 2021-08-09 |
| 10Y ago | $24.32K (+143.2%) started 2016-08-08 | $38.1K (+281.0%) started 2016-08-08 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | VZ | TMUS |
|---|---|---|
| Market cap | $195.46B | $185.26B |
| Trailing P/E | 12.19 | 18.05 |
| Forward P/E | 8.88 | 11.96 |
| Price/Sales | 1.36 | 3.38 |
| EV/Revenue | 2.79 | 3.29 |
| Analyst target | $51.56 | $243.08 |
| Target upside | +10.14% | +40.74% |
Growth, profitability & risk
| Metric | VZ | TMUS |
|---|---|---|
| Revenue growth | -0.70% | 7.90% |
| Earnings growth | -22.00% | 5.30% |
| EPS growth | -22.00% | +5.30% |
| FCF margin | +12.58% | +12.30% |
| Operating margin | 23.00% | 25.22% |
| Profit margin | 11.64% | 11.46% |
| ROIC proxy | 15.84% | 17.99% |
| Return on equity | 15.84% | 17.99% |
| Dividend yield | 6.05% | 2.36% |
| Beta | 0.24 | 0.32 |
| Debt/equity | 184.08 | 214.03 |
| Current ratio | 0.60 | 0.92 |
| Quick ratio | 0.46 | 0.58 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
VZ max drawdown18.28%
TMUS max drawdown35.24%
VZ max wkly drop9.60%
TMUS max wkly drop11.63%
5Y risk snapshot
VZ max drawdown38.38%
TMUS max drawdown38.52%
VZ max wkly drop12.88%
TMUS max wkly drop11.63%
10Y risk snapshot
VZ max drawdown41.21%
TMUS max drawdown38.52%
VZ max wkly drop12.88%
TMUS max wkly drop14.58%
Performance metrics by period
| Period | Metric | VZ | TMUS |
|---|---|---|---|
| 1Y | Growth | +9.73% | -27.49% |
| CAGR | +9.75% | -27.53% | |
| Sharpe ratio | 0.32 | -1.13 | |
| Max drawdown | 18.28% | 35.24% | |
| Max daily drop | 5.24% | 10.75% | |
| Max wkly drop | 9.60% | 11.63% | |
| 5Y | Growth | +6.53% | +24.05% |
| CAGR | +1.28% | +4.41% | |
| Sharpe ratio | -0.03 | 0.12 | |
| Max drawdown | 38.38% | 38.52% | |
| Max daily drop | 7.50% | 11.22% | |
| Max wkly drop | 12.88% | 11.63% | |
| 10Y | Growth | +36.80% | +272.57% |
| CAGR | +3.19% | +14.07% | |
| Sharpe ratio | 0.04 | 0.46 | |
| Max drawdown | 41.21% | 38.52% | |
| Max daily drop | 7.50% | 11.22% | |
| Max wkly drop | 12.88% | 14.58% |
Business comparison
| Category | VZ | TMUS |
|---|---|---|
| Company | Verizon Communications Inc. | T-Mobile US, Inc. |
| Sector | Communication Services | Communication Services |
| Industry | Telecom Services | Telecom Services |
| Core business | Verizon is the largest US wireless carrier by revenue with 115M+ wireless customers and significant wireline business. Verizon's 5G network (C-band and mmWave) provides dense urban coverage. Verizon also operates Fios fiber broadband in northeast markets. Revenue is split between consumer wireless (primary) and business services. Verizon generates $20B+ in annual free cash flow and pays a dividend yielding 6-7% — one of the highest yields among large-cap stocks. Verizon's subscriber growth has been challenged by T-Mobile's competitive momentum. | T-Mobile is the fastest-growing major US wireless carrier, having transformed from the perennial #3 carrier 'Un-carrier' challenger to the leader in 5G coverage and subscriber growth following the Sprint merger. T-Mobile's 2.5GHz mid-band spectrum (from Sprint) provides industry-leading nationwide 5G coverage at speeds that consistently exceed Verizon and AT&T in independent testing. T-Mobile has been gaining wireless subscribers at the expense of Verizon and AT&T while achieving record profitability. T-Mobile pays a dividend and executes significant share buybacks. |
| Investor focus | Investors focus on Verizon's dividend sustainability, wireless subscriber trends vs T-Mobile's gains, C-band 5G rollout completion, Fios broadband expansion, and business services revenue. | Investors focus on T-Mobile's postpaid wireless subscriber net additions, ARPU growth, free cash flow generation, share buybacks, and fixed wireless access (home internet) market share gains. |
VZ strengths
- →Highest US wireless dividend yield at 6-7%: Verizon's dividend provides exceptional income for bond-proxy investors — one of the highest sustainable yields among large-cap US companies
- →Largest US wireless revenue base: Verizon's incumbency creates stable subscription revenues from its large existing customer base — enterprise and government contracts provide sticky B2B revenue
- →C-band spectrum investment completion: Verizon's $45B+ C-band spectrum investment creates a strong 5G mid-band network competitive with T-Mobile and AT&T — the spectrum investment creates multi-year network quality improvement
TMUS strengths
- →Industry-leading 5G mid-band coverage: T-Mobile's 2.5GHz spectrum provides the best nationwide 5G speed and coverage — consistently outperforming Verizon and AT&T in independent network tests
- →Strongest subscriber growth in US wireless: T-Mobile gains net postpaid subscribers every quarter at the expense of Verizon and AT&T — growth momentum and customer satisfaction (J.D. Power awards) create compounding advantages
- →Fixed Wireless Access home internet growth: T-Mobile's 5G home internet service is gaining millions of customers in areas underserved by cable — a new revenue stream that expands T-Mobile's addressable market beyond mobile
Risks to watch — VZ
- →T-Mobile subscriber momentum pressure: T-Mobile has been taking wireless subscribers from Verizon and AT&T consistently — Verizon must offer compelling promotions to defend its base at the cost of ARPU
- →High debt from spectrum and fiber investments: Verizon's $150B+ in debt from spectrum auctions and Tracfone acquisition limits financial flexibility for additional investments
- →Wireline business secular decline: Verizon's legacy landline and DSL businesses continue declining — offset by Fios fiber growth but creating ongoing wireline revenue headwinds
Risks to watch — TMUS
- →Higher valuation premium than Verizon: T-Mobile trades at a significant premium to Verizon on EV/EBITDA and P/FCF — reflecting growth premium that leaves less margin of safety vs value-oriented Verizon
- →Subscriber growth inevitably decelerates: T-Mobile's exceptional subscriber growth from the Sprint merger synergies and Un-carrier marketing cannot continue indefinitely as market share gains become harder from a larger base
- →Deutsche Telekom majority ownership overhang: T-Mobile's parent Deutsche Telekom holds majority control — limiting M&A flexibility and creating a potential majority shareholder-minority shareholder dynamic
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