Data as of:
LIVE
VZ
Verizon Communications Inc. · Telecommunications
$48.09
-2.57% this month
VERSUS
COMPARE
TMUS
T-Mobile US, Inc. · Telecommunications
$168.18
-7.78% this month
Comparison scoreboard
TMUS LEADS 3/5AI Scorei
VZ 39.5
TMUS ✓51.0
1Y Returni
VZ ✓+10.12%
TMUS -29.58%
Fwd P/Ei
VZ ✓9.49
TMUS 12.56
Target Up.i
VZ +2.91%
TMUS ✓+34.19%
Op. Margini
VZ 23.00%
TMUS ✓25.22%
Metrics last refreshed: 9/20/2026
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 9/20/2026
TMUS holds the edge across 3 of 5 key metrics in this comparison. VZ leads on both 1-year return (+10.12%) and forward P/E quality (9.49x vs 12.56x 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 (+34.19%) than for VZ (+2.91%).
Want a full valuation workup? 46-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.
Normalized 1Y performance
VZ
TMUS
Recent returns
VZ
TMUS
Analyst price targets & sentiment
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
VZ · 23 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.3/5.0)
9 Buy / 16 Hold / 0 Sell
Price target range
analyst low$42.00
analyst high$56.00
analyst mean$51.56
current price$48.09
+2.9% upside to analyst mean
TMUS · 27 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.1/5.0)
22 Buy / 5 Hold / 0 Sell
Price target range
analyst low$202.99
analyst high$305.00
analyst mean$243.38
current price$168.18
+34.2% 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 scorei | 39.5 | 51.0 |
| AI ranki | #1237 | #486 |
| Latest closei | $48.09 | $168.18 |
| 1M returni | -2.57% | -7.78% |
| 6M returni | -2.81% | -18.59% |
| 1Y returni | +10.12% | -29.58% |
$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 | $11.01K (+10.1%) started 2025-09-18 | $7.04K (-29.6%) started 2025-09-18 |
| 5Y ago | $14.56K (+45.6%) started 2021-09-20 | $14K (+40.0%) started 2021-09-20 |
| 10Y ago | $26.34K (+163.4%) started 2016-09-19 | $38.29K (+282.9%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | VZ | TMUS |
|---|---|---|
| Market capi | $208.15B | $194.55B |
| Trailing P/Ei | 13.05 | 18.97 |
| Forward P/Ei | 9.49 | 12.56 |
| Price/Salesi | 1.36 | 3.38 |
| EV/Revenuei | 2.89 | 3.39 |
| Analyst targeti | $51.56 | $243.38 |
| Target upsidei | +2.91% | +34.19% |
Growth, profitability & risk
| Metric | VZ | TMUS |
|---|---|---|
| Revenue growthi | -0.70% | 7.90% |
| Earnings growthi | -22.00% | 5.30% |
| EPS growthi | -22.00% | +5.30% |
| FCF margini | +12.58% | +12.30% |
| Operating margini | 23.00% | 25.22% |
| Profit margini | 11.64% | 11.46% |
| ROIC proxyi | 15.84% | 17.99% |
| Return on equityi | 15.84% | 17.99% |
| Dividend yieldi | 5.73% | 2.30% |
| Payout ratioi | 72.79% | 41.21% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.23 | 0.33 |
| Debt/equityi | 184.08 | 214.03 |
| Current ratioi | 0.60 | 0.92 |
| Quick ratioi | 0.46 | 0.58 |
Correlation
Over the past year, VZ and TMUS have moved moderately in the same direction (correlation of 0.58), based on daily returns.
1Y
0.58
-1.0+1.0
5Y
0.46
-1.0+1.0
10Y
0.42
-1.0+1.0
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 drawdowni18.28%
TMUS max drawdowni30.50%
VZ max wkly dropi9.60%
TMUS max wkly dropi11.63%
5Y risk snapshot
VZ max drawdowni38.38%
TMUS max drawdowni38.99%
VZ max wkly dropi12.88%
TMUS max wkly dropi11.63%
10Y risk snapshot
VZ max drawdowni41.21%
TMUS max drawdowni38.99%
VZ max wkly dropi12.88%
TMUS max wkly dropi14.58%
Performance metrics by period
| Period | Metric | VZ | TMUS |
|---|---|---|---|
| 1Y | Growthi | +10.12% | -29.58% |
| CAGRi | +10.13% | -29.60% | |
| Volatilityi | 25.61% | 30.01% | |
| Sharpe ratioi | 0.33 | -1.17 | |
| Sortino ratioi | 0.51 | -1.53 | |
| Max drawdowni | 18.28% | 30.50% | |
| Current drawdowni | 6.53% | 29.78% | |
| Avg drawdowni | 6.87% | 16.95% | |
| Ulcer Indexi | 8.17% | 18.37% | |
| Max daily dropi | 5.24% | 10.75% | |
| Max wkly dropi | 9.60% | 11.63% | |
| 5Y | Growthi | +11.99% | +36.89% |
| CAGRi | +2.29% | +6.49% | |
| Volatilityi | 22.54% | 25.39% | |
| Sharpe ratioi | 0.01 | 0.20 | |
| Sortino ratioi | 0.02 | 0.28 | |
| Max drawdowni | 38.38% | 38.99% | |
| Current drawdowni | 6.53% | 38.36% | |
| Avg drawdowni | 14.32% | 9.96% | |
| Ulcer Indexi | 17.62% | 14.08% | |
| Max daily dropi | 7.50% | 11.22% | |
| Max wkly dropi | 12.88% | 11.63% | |
| 10Y | Growthi | +48.18% | +274.44% |
| CAGRi | +4.01% | +14.12% | |
| Volatilityi | 20.74% | 26.61% | |
| Sharpe ratioi | 0.08 | 0.46 | |
| Sortino ratioi | 0.11 | 0.67 | |
| Max drawdowni | 41.21% | 38.99% | |
| Current drawdowni | 6.53% | 38.36% | |
| Avg drawdowni | 11.89% | 8.66% | |
| Ulcer Indexi | 15.39% | 12.12% | |
| Max daily dropi | 7.50% | 11.22% | |
| Max wkly dropi | 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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