AT&T Inc. (T) vs T-Mobile US, Inc. (TMUS)

AT&T Inc. and T-Mobile US, Inc. are both Telecom Services companies. T-Mobile US, Inc. is the larger, with a market value of $170.3B against $153.2B — 1.1× the size. AT&T Inc. trades at the lower P/E: 7.5× against 16.6×. T-Mobile US, Inc. grew revenue faster over the last twelve months: 9.68% against 2.63%. AT&T Inc. has the higher net margin (16.8% vs 11.5%) and the lower return on invested capital (6.33% vs 8.36%). Both pay a dividend; AT&T Inc. yields more (4.89% vs 2.57%). Across the 23 metrics below, AT&T Inc. leads on 15 and T-Mobile US, Inc. on 8.

Valuation

Metric T TMUS Telecom Services median
P/E 7.51 16.57 15.07
P/S 1.24 1.86 0.83
P/B 1.25 3.05 1.33
Price to free cash flow 8.93 10.44 8.52
EV/EBITDA 6.17 7.71 6.23
EV/Sales 2.23 2.73 1.78
Earnings yield 13.31% 6.03% 1.53%
Free cash flow yield 11.19% 9.57% 5.75%

Profitability

Metric T TMUS Telecom Services median
Gross margin 59.72% 62.19% 50.02%
Operating margin 20.12% 19.80% 7.43%
Net margin 16.83% 11.45% 2.73%
Free cash flow margin 13.85% 17.84% 4.86%
Return on equity 17.28% 17.99% 5.30%
Return on assets 5.14% 4.96% 0.00%
Return on invested capital 6.33% 8.36% 2.96%

Growth

Metric T TMUS Telecom Services median
Revenue growth (TTM) 2.63% 9.68% 4.16%
EPS growth (last fiscal year) 104.03% 0.62% 2.09%
Revenue growth, 5-year CAGR (2.56%) 5.24% 2.58%
Net income growth, 5-year CAGR 0.00% 29.11% 0.00%

Health

Metric T TMUS Telecom Services median
Debt to equity 1.14 1.48 0.61
Current ratio 0.97 0.92 1.11
Net debt to EBITDA 2.62 2.52 1.83

Dividend

Metric T TMUS Telecom Services median
Dividend yield 4.89% 2.57% 2.81%
Payout ratio 0.37 0.43 0.43

Size

Metric T TMUS Telecom Services median
Market cap 153.19b 170.33b 2.71b

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