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TMUS vs. VZ: T-Mobile US vs. Verizon Communications Stock Comparison

How do T-Mobile US (TMUS) and Verizon Communications (VZ) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

T-Mobile US (TMUS) and Verizon Communications (VZ) both fall under the Telecommunication Services industry group, but TMUS is classified in Wireless Telecommunication Services while VZ is classified in Diversified Telecommunication Services.

Company profile comparison for T-Mobile US (TMUS) and Verizon Communications (VZ)
Profile ItemTMUSVZ
NameT-Mobile US, Inc.Verizon Communications Inc.
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupTelecommunication ServicesTelecommunication Services
GICS IndustryWireless Telecommunication ServicesDiversified Telecommunication Services
GICS Sub-IndustryWireless Telecommunication ServicesIntegrated Telecommunication Services
Market Capitalization185.26 billion USD195.46 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateApril 19, 2007November 21, 1983
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

TMUS
VZ
GSPC
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T-Mobile US (TMUS) vs. Verizon Communications (VZ), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for T-Mobile US (TMUS) and Verizon Communications (VZ). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for T-Mobile US (TMUS) and Verizon Communications (VZ). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Total Return (1Y)-26.19%16.95%
Total Return (3Y, Annualized)9.44%18.87%
Total Return (5Y, Annualized)4.63%2.86%

Risk Profile

Drawdown History

TMUS
VZ
GSPC
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T-Mobile US (TMUS) vs. Verizon Communications (VZ), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for T-Mobile US (TMUS) and Verizon Communications (VZ). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Volatility (1Y, Annualized)28.70%24.89%
Beta (5Y)0.340.25
Max Drawdown (5Y)-37.13%-38.38%
Avg. Volume (3M)5.33M27.31M

Risk-Adjusted Performance

Risk-Return Positioning

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TMUS and VZ are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Sharpe Ratio (1Y)-1.050.52
Sortino Ratio (1Y)-1.380.84

Profitability

ROE (TTM)

T-Mobile US (TMUS) at 17.99% sits in the top ROE quartile, while Verizon Communications (VZ) at 15.84% is closer to the peer norm — stronger capital efficiency for TMUS.

TMUS

Telecommunication Services industry group

17.99%

Max
43.27%
TMUS
17.99%
Q3
17.51%
Median
7.35%
Q1
-7.96%
Min
-37.75%

VZ

Telecommunication Services industry group

15.84%

Max
43.27%
Q3
17.51%
VZ
15.84%
Median
7.35%
Q1
-7.96%
Min
-37.75%
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their ROE against the Telecommunication Services industry group benchmark.

Net Margin (TTM)

Both T-Mobile US (TMUS) at 11.46% and Verizon Communications (VZ) at 11.64% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

TMUS

Telecommunication Services industry group

11.46%

Max
30.45%
Q3
11.80%
TMUS
11.46%
Median
4.25%
Q1
-11.20%
Min
-45.00%

VZ

Telecommunication Services industry group

11.64%

Max
30.45%
Q3
11.80%
VZ
11.64%
Median
4.25%
Q1
-11.20%
Min
-45.00%
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their net margin against the Telecommunication Services industry group benchmark.

Operating Margin (TTM)

T-Mobile US (TMUS) at 25.22% operates in the top operating margin quartile, ahead of Verizon Communications (VZ) at 20.96%, which runs around its industry’s norm.

TMUS

Telecommunication Services industry group

25.22%

Max
35.60%
TMUS
25.22%
Q3
21.19%
Median
12.35%
Q1
1.33%
Min
-7.48%

VZ

Telecommunication Services industry group

20.96%

Max
35.60%
Q3
21.19%
VZ
20.96%
Median
12.35%
Q1
1.33%
Min
-7.48%
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their operating margin against the Telecommunication Services industry group benchmark.

Profitability Metrics

Profitability metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
ROE (TTM)17.99%15.84%
ROA (TTM)5.97%4.87%
Net Margin (TTM)11.46%11.64%
Operating Margin (TTM)25.22%20.96%
Gross Margin (TTM)63.05%59.41%

Growth

Revenue Growth

Both T-Mobile US (TMUS) at 8.49% and Verizon Communications (VZ) at 2.52% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both T-Mobile US (TMUS) at 0.62% and Verizon Communications (VZ) at -1.93% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Revenue Growth (YoY)8.49%2.52%
Revenue Growth (3Y CAGR)3.53%0.33%
EPS Growth (YoY)0.62%-1.93%
EPS Growth (3Y CAGR)67.73%-7.08%

Financial Strength

Current Ratio (MRQ)

T-Mobile US (TMUS) at 0.92 keeps current ratio within its industry’s typical mid-range, while Verizon Communications (VZ) at 0.60 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for VZ.

TMUS

Telecommunication Services industry group

0.92

Max
2.78
Q3
1.69
Median
1.16
TMUS
0.92
Q1
0.85
Min
0.25

VZ

Telecommunication Services industry group

0.60

Max
2.78
Q3
1.69
Median
1.16
Q1
0.85
VZ
0.60
Min
0.25
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their current ratio against the Telecommunication Services industry group benchmark.

Debt / Equity (MRQ)

Verizon Communications (VZ) at 1.79 carries an industry-typical debt-to-equity mix, while T-Mobile US (TMUS) at 2.14 uses more debt funding than most peers.

TMUS

Telecommunication Services industry group

2.14

Max
3.79
TMUS
2.14
Q3
2.07
Median
1.00
Q1
0.65
Min
0.00

VZ

Telecommunication Services industry group

1.79

Max
3.79
Q3
2.07
VZ
1.79
Median
1.00
Q1
0.65
Min
0.00
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their debt-to-equity ratio against the Telecommunication Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Current Ratio (MRQ)0.920.60
Debt / Equity (MRQ)2.141.79
Net Debt / EBITDA3.423.74

Dividends

Dividend Yield (TTM)

Verizon Communications (VZ) at 6.06% delivers top-quartile income for its industry, while T-Mobile US (TMUS) at 2.35% pays a more typical yield — both are credible income propositions, VZ the richer one.

TMUS

Telecommunication Services industry group

2.35%

Max
8.06%
Q3
4.76%
TMUS
2.35%
Median
0.00%
Q1
0.00%
Min
0.00%

VZ

Telecommunication Services industry group

6.06%

Max
8.06%
VZ
6.06%
Q3
4.76%
Median
0.00%
Q1
0.00%
Min
0.00%
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their dividend yield against the Telecommunication Services industry group benchmark.

Dividend Payout Ratio (TTM)

T-Mobile US (TMUS) at 41.21% pays out a band-typical share of earnings, while Verizon Communications (VZ) at 72.79% distributes more than its industry norm — less retained, thinner cover.

TMUS

Telecommunication Services industry group

41.21%

Max
128.57%
Q3
68.90%
TMUS
41.21%
Median
7.71%
Q1
0.00%
Min
0.00%

VZ

Telecommunication Services industry group

72.79%

Max
128.57%
VZ
72.79%
Q3
68.90%
Median
7.71%
Q1
0.00%
Min
0.00%
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their payout ratio against the Telecommunication Services industry group benchmark.

Dividend Metrics

Dividend metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
Dividend Yield (TTM)2.35%6.06%
Dividend Payout Ratio (TTM)41.21%72.79%

Valuation

P/E Ratio (TTM)

Both T-Mobile US (TMUS) at 18.05 and Verizon Communications (VZ) at 12.19 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

TMUS

Telecommunication Services industry group

18.05

Max
27.49
Q3
20.14
TMUS
18.05
Median
14.86
Q1
8.88
Min
2.53

VZ

Telecommunication Services industry group

12.19

Max
27.49
Q3
20.14
Median
14.86
VZ
12.19
Q1
8.88
Min
2.53
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their P/E ratio against the Telecommunication Services industry group benchmark.

P/S Ratio (TTM)

Verizon Communications (VZ) at 1.41 is priced about in line with its industry on P/S ratio, while T-Mobile US (TMUS) at 2.01 sits in the pricier quartile — TMUS costs more per dollar of sales.

TMUS

Telecommunication Services industry group

2.01

Max
3.07
TMUS
2.01
Q3
1.86
Median
0.81
Q1
0.37
Min
0.00

VZ

Telecommunication Services industry group

1.41

Max
3.07
Q3
1.86
VZ
1.41
Median
0.81
Q1
0.37
Min
0.00
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their P/S ratio against the Telecommunication Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both T-Mobile US (TMUS) at 3.36 and Verizon Communications (VZ) at 1.87 are valued close to their industries’ norm against book — neither stands out from peers.

TMUS

Telecommunication Services industry group

3.36

Max
7.38
Q3
3.48
TMUS
3.36
Median
1.59
Q1
0.72
Min
0.01

VZ

Telecommunication Services industry group

1.87

Max
7.38
Q3
3.48
VZ
1.87
Median
1.59
Q1
0.72
Min
0.01
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T-Mobile US (TMUS) vs. Verizon Communications (VZ): A comparison of their P/B ratio against the Telecommunication Services industry group benchmark.

Valuation Metrics

Valuation metrics for T-Mobile US (TMUS) and Verizon Communications (VZ)
MetricTMUSVZ
P/E Ratio (TTM)18.0512.19
P/S Ratio (TTM)2.011.41
P/B Ratio (MRQ)3.361.87
Free Cash Flow Yield (TTM)6.12%9.66%