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

AT&T Inc. and T-Mobile US, Inc. are both Telecom Services companies. AT&T Inc. and T-Mobile US, Inc. are of similar size ($176.0B and $174.2B). AT&T Inc. trades at the lower P/E: 8.4× against 17.3×. 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 (6.67% vs 1.46%). 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 8.40 17.27 13.27
P/S 1.38 1.94 0.95
P/B 1.39 3.18 1.47
Price to free cash flow 9.99 10.88 8.72
EV/EBITDA 6.58 7.93 6.85
EV/Sales 2.38 2.81 1.87
Earnings yield 11.90% 5.79% 1.66%
Free cash flow yield 10.01% 9.19% 5.53%

Profitability

Metric T TMUS Telecom Services median
Gross margin 59.72% 62.19% 51.26%
Operating margin 20.12% 19.80% 7.62%
Net margin 16.83% 11.45% 4.22%
Free cash flow margin 13.85% 17.84% 4.73%
Return on equity 17.28% 17.99% 5.80%
Return on assets 5.14% 4.96% 0.00%
Return on invested capital 6.33% 8.36% 3.41%

Growth

Metric T TMUS Telecom Services median
Revenue growth (TTM) 2.63% 9.68% 3.31%
EPS growth (last fiscal year) 104.03% 0.62% —
Revenue growth, 5-year CAGR (2.56%) 5.24% 1.50%
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 0.63
Current ratio 0.97 0.92 1.13
Net debt to EBITDA 2.62 2.52 1.86

Dividend

Metric T TMUS Telecom Services median
Dividend yield 6.67% 1.46% 4.06%
Payout ratio 0.56 0.00 0.00

Size

Metric T TMUS Telecom Services median
Market cap 174.19b 175.97b 3.06b

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