T vs VZ Stock Comparison: AI Score, Valuation, Performance and Upside
AT&T and Verizon are the two largest traditional US telecom companies and offer very similar high-yield value propositions. Both have elevated debt, large wireless businesses, and expanding fiber broadband strategies. AT&T Fiber is more advanced in its organic fiber build; Verizon's Frontier acquisition will eventually close the gap. T has been more competitive on wireless subscriber adds recently; VZ has the stronger network quality reputation.
T and VZ are both high-yield income investments where the fiber broadband expansion is the key growth catalyst — investors should assess which company's fiber strategy and balance sheet trajectory creates more confidence in dividend sustainability and earnings growth.
VZ holds the edge across 4 of 5 key metrics in this comparison. VZ leads on both 1-year return (+8.41%) and forward P/E (9.14x vs 9.25x for T), a relatively favorable combination of momentum and valuation. VZ leads on both revenue growth (2.90%) and operating margin (25.19%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for T (+28.42%) than for VZ (+7.89%).
- →want high dividend yield from a simplified, focused connectivity company post-WarnerMedia spin-off
- →value AT&T Fiber's competitive momentum gaining broadband market share from cable incumbents
- →believe the debt reduction trajectory will unlock additional capital return capacity over time
- →are comfortable with ongoing fiber capex spend in exchange for higher long-term broadband revenue
- →prefer Verizon's network quality reputation as a premium wireless provider
- →see value in the Frontier acquisition as a broadband footprint expansion catalyst
- →want fixed wireless access as a capital-efficient broadband supplement to fiber
- →value the brand recognition and enterprise wireless relationships built over decades
| Metric | T | VZ |
|---|---|---|
| AI score | 40.1 | 40.7 |
| AI rank | #1078 | #1026 |
| Latest close | $22.01 | $45.37 |
| 1M return | -11.89% | -4.96% |
| 6M return | -9.65% | +10.98% |
| 1Y return | -20.40% | +8.41% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | T | VZ |
|---|---|---|
| 1Y ago | $7.96K (-20.4%) started 2025-06-18 | $10.89K (+8.9%) started 2025-06-18 |
| 5Y ago | $17.91K (+79.1%) started 2021-06-21 | $13.56K (+35.6%) started 2021-06-21 |
| 10Y ago | $34.39K (+243.9%) started 2016-06-20 | $24.29K (+142.9%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | T | VZ |
|---|---|---|
| Market cap | $163.84B | $200.89B |
| Trailing P/E | 7.76 | 11.73 |
| Forward P/E | 9.25 | 9.14 |
| Price/Sales | 1.64 | 1.36 |
| EV/Revenue | 2.60 | 2.84 |
| Analyst target | $30.28 | $51.90 |
| Target upside | +28.42% | +7.89% |
| Metric | T | VZ |
|---|---|---|
| Revenue growth | 2.90% | 2.90% |
| Earnings growth | -11.30% | 4.30% |
| EPS growth | -11.30% | +4.30% |
| FCF margin | +6.99% | +14.09% |
| Operating margin | 22.72% | 25.19% |
| Profit margin | 16.94% | 12.46% |
| ROIC proxy | 18.37% | 17.20% |
| Return on equity | 18.37% | 17.20% |
| Dividend yield | 4.71% | 5.88% |
| Beta | 0.40 | 0.22 |
| Debt/equity | 125.17 | 192.04 |
| Current ratio | 0.92 | 0.64 |
| Quick ratio | 0.52 | 0.51 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | T | VZ |
|---|---|---|---|
| 1Y | Growth | -20.43% | +8.88% |
| CAGR | -20.45% | +8.89% | |
| Sharpe ratio | -1.10 | 0.29 | |
| Max drawdown | 25.69% | 14.78% | |
| Max daily drop | 4.42% | 5.11% | |
| Max wkly drop | 9.57% | 8.75% | |
| 5Y | Growth | +31.92% | +2.81% |
| CAGR | +5.71% | +0.56% | |
| Sharpe ratio | 0.17 | -0.07 | |
| Max drawdown | 32.01% | 38.38% | |
| Max daily drop | 10.41% | 7.50% | |
| Max wkly drop | 12.69% | 12.88% | |
| 10Y | Growth | +37.75% | +34.49% |
| CAGR | +3.26% | +3.01% | |
| Sharpe ratio | 0.07 | 0.03 | |
| Max drawdown | 39.43% | 41.21% | |
| Max daily drop | 10.41% | 7.50% | |
| Max wkly drop | 17.46% | 12.88% |
| Category | T | VZ |
|---|---|---|
| Company | AT&T Inc. | Verizon Communications Inc. |
| Sector | Communication Services | Communication Services |
| Industry | Telecom Services | Telecom Services |
| Core business | AT&T is a telecommunications giant providing wireless services (postpaid and prepaid), fiber broadband (AT&T Fiber / ATTF), and business telecom services. Following the spin-off of WarnerMedia (now Warner Bros. Discovery), AT&T is a focused connectivity company. AT&T Fiber is a key growth pillar — the company is expanding its fiber footprint to pass 30+ million locations and has been gaining broadband market share from cable incumbents. Consumer postpaid wireless is the largest revenue segment. | Verizon is the US's largest wireless carrier by total connections, with a network reputation for reliability that has historically supported premium pricing. Its Fios fiber broadband service covers parts of the Northeast but has more limited geographic scope than AT&T Fiber. Verizon has been pursuing fixed wireless access (FWA) broadband via its 5G network as a broadband expansion strategy in markets without Fios infrastructure. The Frontier Communications acquisition will meaningfully expand its fiber footprint. |
| Investor focus | Investors track postpaid net adds and churn, AT&T Fiber location passings and penetration rates, free cash flow generation (critical for dividend sustainability and debt repayment), and the pace of debt reduction from the WarnerMedia/DirecTV era. | Investors track postpaid phone net adds (Verizon has been losing share to T-Mobile), ARPU trends, the Frontier acquisition integration timeline and fiber passings expansion, and free cash flow relative to the dividend (payout ratio is high). |
- →AT&T Fiber is gaining broadband market share from cable with superior speed and reliability
- →Postpaid wireless subscriber growth has been consistently competitive with T-Mobile in recent years
- →WarnerMedia separation simplified the capital allocation story and reduced conglomerate risk
- →Network reliability reputation supports premium pricing in the postpaid wireless segment
- →Frontier acquisition will accelerate fiber footprint expansion to 25M+ locations
- →Fixed wireless access (FWA) providing broadband to 4M+ homes without requiring fiber infrastructure
- →Elevated legacy debt from the DirecTV and WarnerMedia acquisitions constrains shareholder returns
- →DirecTV satellite video subscriber decline is a persistent drag requiring ultimate resolution
- →Fiber build requires significant ongoing capex investment limiting near-term free cash flow
- →Postpaid phone market share losses to T-Mobile have been a multi-year trend requiring reversal
- →Frontier acquisition adds debt and integration complexity
- →Dividend payout ratio is high relative to free cash flow, limiting reduction runway if FCF misses
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