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AT&T Inc. (T) vs Verizon Communications Inc. (VZ)

AT&T Inc. and Verizon Communications Inc. are both Telecom Services companies. Verizon Communications Inc. is the larger, with a market value of $191.2B against $147.0B — 1.3× the size. Verizon Communications Inc. trades at the lower P/E: 11.8× against 11.8×. AT&T Inc. grew revenue faster over the last twelve months: 3.51% against 1.38%. Verizon Communications Inc. has the higher net margin (11.8% vs 10.1%) and the higher return on invested capital (6.75% vs 5.43%). Both pay a dividend; Verizon Communications Inc. yields more (6.10% vs 5.09%). Across the 23 metrics below, AT&T Inc. leads on 14 and Verizon Communications Inc. on 9.

Valuation

Metric T VZ Telecom Services median
P/E 11.78 11.76 12.29
P/S 1.16 1.37 0.94
P/B 1.21 1.79 1.25
Price to free cash flow 8.36 10.71 8.15
EV/EBITDA 6.83 7.27 7.05
EV/Sales 2.31 2.53 1.79
Earnings yield 8.49% 8.51% 3.40%
Free cash flow yield 11.96% 9.33% 4.48%

Profitability

Metric T VZ Telecom Services median
Gross margin 59.74% 59.59% 48.78%
Operating margin 18.30% 20.86% 9.22%
Net margin 10.08% 11.78% 6.67%
Free cash flow margin 13.83% 12.83% 2.87%
Return on equity 10.41% 15.37% 6.00%
Return on assets 2.99% 4.09% 1.50%
Return on invested capital 5.43% 6.75% 3.77%

Growth

Metric T VZ Telecom Services median
Revenue growth (TTM) 3.51% 1.38% 5.40%
EPS growth (last fiscal year) 104.03% (1.93%) 0.62%
Revenue growth, 5-year CAGR (2.56%) 1.50% 2.53%
Net income growth, 5-year CAGR 0.00% (0.71%) 0.00%

Health

Metric T VZ Telecom Services median
Debt to equity 1.30 1.55 0.57
Current ratio 0.87 0.63 1.09
Net debt to EBITDA 2.62 2.92 1.86

Dividend

Metric T VZ Telecom Services median
Dividend yield 5.09% 6.10% 2.55%
Payout ratio 0.60 0.72 0.40

Size

Metric T VZ Telecom Services median
Market cap 146.99b 191.15b 3.16b

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