T-Mobile US, Inc. (TMUS) vs Verizon Communications Inc. (VZ)

T-Mobile US, Inc. and Verizon Communications Inc. are both Telecom Services companies. Verizon Communications Inc. is the larger, with a market value of $197.0B against $176.0B — 1.1× the size. Verizon Communications Inc. trades at the lower P/E: 12.3× against 17.3×. T-Mobile US, Inc. grew revenue faster over the last twelve months: 9.68% against 1.38%. Verizon Communications Inc. has the higher net margin (11.6% vs 11.5%) and the lower return on invested capital (6.64% vs 8.36%). Both pay a dividend; Verizon Communications Inc. yields more (6.75% vs 1.46%). Across the 23 metrics below, T-Mobile US, Inc. leads on 12 and Verizon Communications Inc. on 11.

Valuation

Metric TMUS VZ Telecom Services median
P/E 17.27 12.26 13.27
P/S 1.94 1.41 0.95
P/B 3.18 1.87 1.47
Price to free cash flow 10.88 9.73 8.72
EV/EBITDA 7.93 7.56 6.85
EV/Sales 2.81 2.59 1.87
Earnings yield 5.79% 8.16% 1.66%
Free cash flow yield 9.19% 10.27% 5.53%

Profitability

Metric TMUS VZ Telecom Services median
Gross margin 62.19% 59.26% 51.26%
Operating margin 19.80% 20.54% 7.62%
Net margin 11.45% 11.64% 4.22%
Free cash flow margin 17.84% 14.51% 4.73%
Return on equity 17.99% 15.43% 5.80%
Return on assets 4.96% 4.08% 0.00%
Return on invested capital 8.36% 6.64% 3.41%

Growth

Metric TMUS VZ Telecom Services median
Revenue growth (TTM) 9.68% 1.38% 3.31%
EPS growth (last fiscal year) 0.62% (1.93%) —
Revenue growth, 5-year CAGR 5.24% 1.50% 1.50%
Net income growth, 5-year CAGR 29.11% (0.71%) 0.00%

Health

Metric TMUS VZ Telecom Services median
Debt to equity 1.48 1.57 0.63
Current ratio 0.92 0.60 1.13
Net debt to EBITDA 2.52 2.92 1.86

Dividend

Metric TMUS VZ Telecom Services median
Dividend yield 1.46% 6.75% 4.06%
Payout ratio 0.00 0.52 0.00

Size

Metric TMUS VZ Telecom Services median
Market cap 175.97b 196.96b 3.06b

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