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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 $191.2B against $170.1B — 1.1× the size. Verizon Communications Inc. trades at the lower P/E: 11.8× against 15.4×. T-Mobile US, Inc. grew revenue faster over the last twelve months: 9.28% against 1.38%. T-Mobile US, Inc. has the higher net margin (12.1% vs 11.8%) and the higher return on invested capital (9.14% vs 6.75%). Both pay a dividend; Verizon Communications Inc. yields more (6.10% vs 2.55%). Across the 23 metrics below, T-Mobile US, Inc. leads on 15 and Verizon Communications Inc. on 8.

Valuation

Metric TMUS VZ Telecom Services median
P/E 15.41 11.76 12.29
P/S 1.83 1.37 0.94
P/B 3.04 1.79 1.25
Price to free cash flow 8.21 10.71 8.15
EV/EBITDA 7.32 7.27 7.05
EV/Sales 2.64 2.53 1.79
Earnings yield 6.49% 8.51% 3.40%
Free cash flow yield 12.17% 9.33% 4.48%

Profitability

Metric TMUS VZ Telecom Services median
Gross margin 62.07% 59.59% 48.78%
Operating margin 20.66% 20.86% 9.22%
Net margin 12.05% 11.78% 6.67%
Free cash flow margin 22.25% 12.83% 2.87%
Return on equity 19.35% 15.37% 6.00%
Return on assets 5.25% 4.09% 1.50%
Return on invested capital 9.14% 6.75% 3.77%

Growth

Metric TMUS VZ Telecom Services median
Revenue growth (TTM) 9.28% 1.38% 5.40%
EPS growth (last fiscal year) 0.62% (1.93%) 0.62%
Revenue growth, 5-year CAGR 5.24% 1.50% 2.53%
Net income growth, 5-year CAGR 29.11% (0.71%) 0.00%

Health

Metric TMUS VZ Telecom Services median
Debt to equity 1.45 1.55 0.57
Current ratio 0.91 0.63 1.09
Net debt to EBITDA 2.52 2.92 1.86

Dividend

Metric TMUS VZ Telecom Services median
Dividend yield 2.55% 6.10% 2.55%
Payout ratio 0.39 0.72 0.40

Size

Metric TMUS VZ Telecom Services median
Market cap 170.11b 191.15b 3.16b

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