TEF vs. VZ: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TEF and VZ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
VZ’s market capitalization of 183.62 billion USD is significantly greater than TEF’s 29.85 billion USD, highlighting its more substantial market valuation.
With betas of 0.56 for TEF and 0.38 for VZ, both stocks show similar sensitivity to overall market movements.
TEF trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, VZ is a standard domestic listing.
| Symbol | TEF | VZ |
|---|---|---|
| Company Name | Telefónica, S.A. | Verizon Communications Inc. |
| Country | ES | US |
| Sector | Communication Services | Communication Services |
| Industry | Telecommunications Services | Telecommunications Services |
| CEO | Marc Thomas Murtra Millar | Hans E. Vestberg |
| Price | 5.29 USD | 43.55 USD |
| Market Cap | 29.85 billion USD | 183.62 billion USD |
| Beta | 0.56 | 0.38 |
| Exchange | NYSE | NYSE |
| IPO Date | June 12, 1987 | November 21, 1983 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of TEF and VZ by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
TEF
-10.32%
Telecommunications Services Industry
- Max
- 36.08%
- Q3
- 16.39%
- Median
- 6.66%
- Q1
- -5.80%
- Min
- -26.90%
TEF has a negative Return on Equity of -10.32%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
VZ
18.12%
Telecommunications Services Industry
- Max
- 36.08%
- Q3
- 16.39%
- Median
- 6.66%
- Q1
- -5.80%
- Min
- -26.90%
In the upper quartile for the Telecommunications Services industry, VZ’s Return on Equity of 18.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
TEF
0.74%
Telecommunications Services Industry
- Max
- 13.02%
- Q3
- 6.76%
- Median
- 4.03%
- Q1
- 0.50%
- Min
- -4.79%
TEF’s Return on Invested Capital of 0.74% is in line with the norm for the Telecommunications Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
VZ
6.55%
Telecommunications Services Industry
- Max
- 13.02%
- Q3
- 6.76%
- Median
- 4.03%
- Q1
- 0.50%
- Min
- -4.79%
VZ’s Return on Invested Capital of 6.55% is in line with the norm for the Telecommunications Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
TEF
-4.67%
Telecommunications Services Industry
- Max
- 20.59%
- Q3
- 10.07%
- Median
- 3.00%
- Q1
- -4.53%
- Min
- -18.76%
TEF has a negative Net Profit Margin of -4.67%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
VZ
13.14%
Telecommunications Services Industry
- Max
- 20.59%
- Q3
- 10.07%
- Median
- 3.00%
- Q1
- -4.53%
- Min
- -18.76%
A Net Profit Margin of 13.14% places VZ in the upper quartile for the Telecommunications Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
TEF
6.09%
Telecommunications Services Industry
- Max
- 37.46%
- Q3
- 22.75%
- Median
- 10.32%
- Q1
- 0.62%
- Min
- -16.66%
TEF’s Operating Profit Margin of 6.09% is around the midpoint for the Telecommunications Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
VZ
21.54%
Telecommunications Services Industry
- Max
- 37.46%
- Q3
- 22.75%
- Median
- 10.32%
- Q1
- 0.62%
- Min
- -16.66%
VZ’s Operating Profit Margin of 21.54% is around the midpoint for the Telecommunications Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | TEF | VZ |
|---|---|---|
| Return on Equity (TTM) | -10.32% | 18.12% |
| Return on Assets (TTM) | -1.90% | 4.68% |
| Return on Invested Capital (TTM) | 0.74% | 6.55% |
| Net Profit Margin (TTM) | -4.67% | 13.14% |
| Operating Profit Margin (TTM) | 6.09% | 21.54% |
| Gross Profit Margin (TTM) | 69.50% | 59.88% |
Financial Strength
Current Ratio
TEF
0.97
Telecommunications Services Industry
- Max
- 2.27
- Q3
- 1.38
- Median
- 0.96
- Q1
- 0.66
- Min
- 0.36
TEF’s Current Ratio of 0.97 aligns with the median group of the Telecommunications Services industry, indicating that its short-term liquidity is in line with its sector peers.
VZ
0.61
Telecommunications Services Industry
- Max
- 2.27
- Q3
- 1.38
- Median
- 0.96
- Q1
- 0.66
- Min
- 0.36
VZ’s Current Ratio of 0.61 falls into the lower quartile for the Telecommunications Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
TEF
0.40
Telecommunications Services Industry
- Max
- 4.64
- Q3
- 2.32
- Median
- 1.35
- Q1
- 0.63
- Min
- 0.00
Falling into the lower quartile for the Telecommunications Services industry, TEF’s Debt-to-Equity Ratio of 0.40 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
VZ
1.67
Telecommunications Services Industry
- Max
- 4.64
- Q3
- 2.32
- Median
- 1.35
- Q1
- 0.63
- Min
- 0.00
VZ’s Debt-to-Equity Ratio of 1.67 is typical for the Telecommunications Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
TEF
5.43
Telecommunications Services Industry
- Max
- 8.83
- Q3
- 4.35
- Median
- 2.26
- Q1
- 0.11
- Min
- -1.74
TEF’s Interest Coverage Ratio of 5.43 is in the upper quartile for the Telecommunications Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
VZ
4.39
Telecommunications Services Industry
- Max
- 8.83
- Q3
- 4.35
- Median
- 2.26
- Q1
- 0.11
- Min
- -1.74
VZ’s Interest Coverage Ratio of 4.39 is in the upper quartile for the Telecommunications Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | TEF | VZ |
|---|---|---|
| Current Ratio (TTM) | 0.97 | 0.61 |
| Quick Ratio (TTM) | 0.93 | 0.58 |
| Debt-to-Equity Ratio (TTM) | 0.40 | 1.67 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.44 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.06 | 3.44 |
| Interest Coverage Ratio (TTM) | 5.43 | 4.39 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for TEF and VZ. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
TEF
6.15%
Telecommunications Services Industry
- Max
- 128.28%
- Q3
- 6.07%
- Median
- 1.86%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.15%, TEF offers a more attractive income stream than most of its peers in the Telecommunications Services industry, signaling a strong commitment to shareholder returns.
VZ
6.19%
Telecommunications Services Industry
- Max
- 128.28%
- Q3
- 6.07%
- Median
- 1.86%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.19%, VZ offers a more attractive income stream than most of its peers in the Telecommunications Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
TEF
-86.15%
Telecommunications Services Industry
- Max
- 146.49%
- Q3
- 63.59%
- Median
- 29.65%
- Q1
- 0.00%
- Min
- 0.00%
TEF has a negative Dividend Payout Ratio of -86.15%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
VZ
63.59%
Telecommunications Services Industry
- Max
- 146.49%
- Q3
- 63.59%
- Median
- 29.65%
- Q1
- 0.00%
- Min
- 0.00%
VZ’s Dividend Payout Ratio of 63.59% is within the typical range for the Telecommunications Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | TEF | VZ |
|---|---|---|
| Dividend Yield (TTM) | 6.15% | 6.19% |
| Dividend Payout Ratio (TTM) | -86.15% | 63.59% |
Valuation
Price-to-Earnings Ratio
TEF
-13.62
Telecommunications Services Industry
- Max
- 27.65
- Q3
- 20.70
- Median
- 15.25
- Q1
- 10.05
- Min
- 5.86
TEF has a negative P/E Ratio of -13.62. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
VZ
10.34
Telecommunications Services Industry
- Max
- 27.65
- Q3
- 20.70
- Median
- 15.25
- Q1
- 10.05
- Min
- 5.86
VZ’s P/E Ratio of 10.34 is within the middle range for the Telecommunications Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
TEF
-3.11
Telecommunications Services Industry
- Max
- 3.27
- Q3
- 2.93
- Median
- 1.35
- Q1
- 0.64
- Min
- 0.01
TEF has a negative Forward PEG Ratio of -3.11. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
VZ
2.81
Telecommunications Services Industry
- Max
- 3.27
- Q3
- 2.93
- Median
- 1.35
- Q1
- 0.64
- Min
- 0.01
VZ’s Forward PEG Ratio of 2.81 is within the middle range of its peers in the Telecommunications Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
TEF
0.64
Telecommunications Services Industry
- Max
- 3.23
- Q3
- 1.83
- Median
- 1.32
- Q1
- 0.83
- Min
- 0.11
In the lower quartile for the Telecommunications Services industry, TEF’s P/S Ratio of 0.64 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
VZ
1.36
Telecommunications Services Industry
- Max
- 3.23
- Q3
- 1.83
- Median
- 1.32
- Q1
- 0.83
- Min
- 0.11
VZ’s P/S Ratio of 1.36 aligns with the market consensus for the Telecommunications Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
TEF
1.30
Telecommunications Services Industry
- Max
- 4.39
- Q3
- 2.65
- Median
- 1.82
- Q1
- 1.09
- Min
- 0.29
TEF’s P/B Ratio of 1.30 is within the conventional range for the Telecommunications Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
VZ
1.83
Telecommunications Services Industry
- Max
- 4.39
- Q3
- 2.65
- Median
- 1.82
- Q1
- 1.09
- Min
- 0.29
VZ’s P/B Ratio of 1.83 is within the conventional range for the Telecommunications Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | TEF | VZ |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -13.62 | 10.34 |
| Forward PEG Ratio (TTM) | -3.11 | 2.81 |
| Price-to-Sales Ratio (P/S, TTM) | 0.64 | 1.36 |
| Price-to-Book Ratio (P/B, TTM) | 1.30 | 1.83 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 5.31 | 9.10 |
| EV-to-EBITDA (TTM) | 2.13 | 7.27 |
| EV-to-Sales (TTM) | 0.65 | 2.58 |