LIVE
VZ
Verizon Communications Inc. · Telecommunications
$45.37
-4.96% this month
VERSUS
⟷
COMPARE
TMUS
T-Mobile US, Inc. · Telecommunications
$181.67
-6.07% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
VZ
3
TMUS
2
Comparison scoreboard
VZ LEADS 3/5AI Score
VZ 40.7
TMUS ✓51.0
1Y Return
VZ ✓+8.41%
TMUS -17.96%
Fwd P/E
VZ ✓8.62
TMUS 13.00
Target Up.
VZ +14.40%
TMUS ✓+43.56%
Op. Margin
VZ ✓25.19%
TMUS 24.01%
Metrics last refreshed: 6/22/2026
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 6/22/2026
VZ holds the edge across 3 of 5 key metrics in this comparison. VZ leads on both 1-year return (+8.41%) and forward P/E (8.62x vs 13.00x for TMUS), a relatively favorable combination of momentum and valuation. On fundamentals, TMUS is growing revenue faster (10.60%), while VZ maintains the higher operating margin (25.19%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for TMUS (+43.56%) than for VZ (+14.40%).
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$51.90
current price$45.37
+14.4% 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$260.81
current price$181.67
+43.6% 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 | 40.7 | 51.0 |
| AI rank | #1026 | #403 |
| Latest close | $45.37 | $181.67 |
| 1M return | -4.96% | -6.07% |
| 6M return | +10.98% | -8.88% |
| 1Y return | +8.41% | -17.96% |
$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 | $10.89K (+8.9%) started 2025-06-18 | $8.22K (-17.8%) started 2025-06-18 |
| 5Y ago | $13.56K (+35.6%) started 2021-06-21 | $13.04K (+30.4%) started 2021-06-21 |
| 10Y ago | $24.29K (+142.9%) started 2016-06-20 | $44.93K (+349.3%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | VZ | TMUS |
|---|---|---|
| Market cap | $189.45B | $196.6B |
| Trailing P/E | 11.07 | 19.31 |
| Forward P/E | 8.62 | 13.00 |
| Price/Sales | 1.36 | 3.38 |
| EV/Revenue | 2.75 | 3.48 |
| Analyst target | $51.90 | $260.81 |
| Target upside | +14.40% | +43.56% |
Growth, profitability & risk
| Metric | VZ | TMUS |
|---|---|---|
| Revenue growth | 2.90% | 10.60% |
| Earnings growth | 4.30% | -12.00% |
| EPS growth | +4.30% | -12.00% |
| FCF margin | +14.09% | +12.31% |
| Operating margin | 25.19% | 24.01% |
| Profit margin | 12.46% | 11.65% |
| ROIC proxy | 17.20% | 18.02% |
| Return on equity | 17.20% | 18.02% |
| Dividend yield | 6.24% | 2.25% |
| Beta | 0.22 | 0.30 |
| Debt/equity | 192.04 | 218.57 |
| Current ratio | 0.64 | 1.09 |
| Quick ratio | 0.51 | 0.70 |
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 drawdown14.78%
TMUS max drawdown31.66%
VZ max wkly drop8.75%
TMUS max wkly drop7.87%
5Y risk snapshot
VZ max drawdown38.38%
TMUS max drawdown35.12%
VZ max wkly drop12.88%
TMUS max wkly drop11.17%
10Y risk snapshot
VZ max drawdown41.21%
TMUS max drawdown35.12%
VZ max wkly drop12.88%
TMUS max wkly drop14.58%
Performance metrics by period
| Period | Metric | VZ | TMUS |
|---|---|---|---|
| 1Y | Growth | +8.88% | -17.79% |
| CAGR | +8.89% | -17.82% | |
| Sharpe ratio | 0.29 | -0.85 | |
| Max drawdown | 14.78% | 31.66% | |
| Max daily drop | 5.11% | 3.97% | |
| Max wkly drop | 8.75% | 7.87% | |
| 5Y | Growth | +2.81% | +27.54% |
| CAGR | +0.56% | +4.99% | |
| Sharpe ratio | -0.07 | 0.14 | |
| Max drawdown | 38.38% | 35.12% | |
| Max daily drop | 7.50% | 11.22% | |
| Max wkly drop | 12.88% | 11.17% | |
| 10Y | Growth | +34.49% | +339.39% |
| CAGR | +3.01% | +15.96% | |
| Sharpe ratio | 0.03 | 0.53 | |
| Max drawdown | 41.21% | 35.12% | |
| 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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