Telecoms · 21/36 against 23/36 checks · to 2026-09-08
T vs VZ.
AT&TRuns one of the three US wireless networks and a growing fibre broadband business.
VerizonRuns one of the three US wireless networks, plus fibre broadband.→AT&T (T) and Verizon (VZ) are within reach of each other at $175.4B and $209.4B, and on the filings Verizon passes more, 23 checks of 36 against 21.
Which passes more checks?
widest gap first→No axis separates them by more than 2 of six checks, and the widest is Growth.
| T | VZ | |
|---|---|---|
| Growth | 4/6 | 2/6 |
| Trend analysis | 4/6 | 6/6 |
| Quality | 4/6 | 5/6 |
| Health | 2/6 | 3/6 |
| Value | 3/6 | 3/6 |
| Shareholder returns | 4/6 | 4/6 |
| All checks | 21/36 | 23/36 |
→Verizon turns over $138.9B to AT&T's $127.2B, 1.1 times as much. AT&T keeps 16.9% of revenue as profit against 12.0% at Verizon.
Which is growing faster, T or VZ?
→AT&T and Verizon grew revenue at much the same rate last year, +2.6% against +1.4%. Over three years the order is the same, AT&T at +1.3% and Verizon at +0.3%.
| T | VZ | |
|---|---|---|
| Revenue (TTM) | $127.2B | $138.9B |
| Revenue growth, 1 year | +2.6% | +1.4% |
| Revenue CAGR, 3 years | +1.3% | +0.3% |
| Net income (TTM) | $21.6B | $16.6B |
| Free cash flow (TTM) | $17.6B | $21.8B |
Which keeps more of each sale?
→Verizon keeps more of each sale: gross margin of 83.7% against 50.6%, a gap of 33 points that flows into everything below it.
| T | VZ | |
|---|---|---|
| Gross margin | 50.6% | 83.7% |
| Operating margin | 20.1% | 20.5% |
| Return on equity | 17.1% | 15.8% |
Which balance sheet is stronger?
→Both lean on debt to a similar degree, 1.14x to equity at AT&T and 1.57x at Verizon.
| T | VZ | |
|---|---|---|
| Debt / equity | 1.14x | 1.57x |
| Interest coverage | 3.6x | 3.9x |
| Cash and short-term investments | $19.5B | $2.1B |
Which is cheaper?
→AT&T is the cheaper of the two on earnings, 8.5x against 12.8x. Against their own histories, AT&T is above its 7.0x median and Verizon is above its 8.4x.
| T | VZ | |
|---|---|---|
| Share price | $25.60 | $50.41 |
| Market cap | $175.4B | $209.4B |
| P/E | 8.5x | 12.8x |
| P/E, own median own 9-year median / own 11-year median | 7.0x | 8.4x |
| P/S | 1.4x | 1.5x |
| Free cash flow yield | 10.0% | 10.4% |
Which hands more back to owners?
→Both pay: Verizon yields the more at 5.5% against 4.7%. A yield rises when a price falls, so read it beside the payout checks in each report.
| T | VZ | |
|---|---|---|
| Dividend yield | 4.7% | 5.5% |
| Payout ratio | 37.9% | 69.1% |
| Years of unbroken dividend | - | - |
Where they differ most
the checks behind the gapGrowth: AT&T 2 ahead
- Profits grew last year 69.0% vs 0.0%
- Profit growth beats its peers profitable now after losses three years ago
- Growth is speeding up, not slowing 1y 2.6% vs 3y 1.3%
- Outgrew its sector last year 1.4% vs 5.2% (sector 70th pct, n=61)
- Sustained growth beats its sector (3 years) 0.3% vs 5.2% (sector 70th pct, n=57)
- Profits grew last year -10.9% vs 0.0%
Trend analysis: Verizon 2 ahead
- Price above the Kumo cloud $50.41 against a cloud top of $45.25
- Price above the Tenkan and the Kijun $50.41 against the Tenkan (9 sessions) at $50.02 and the Kijun (26) at $48.01
- Tenkan above the Kijun Tenkan $50.02 above the Kijun $48.01, 33 sessions since they crossed
- Price above the Tenkan and the Kijun $25.60 against the Tenkan (9 sessions) at $25.86 and the Kijun (26) at $24.49
- Beating the S&P 500 over 12 months -9.4% vs 19.7%