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T vs VZ

T
AT&T Inc.
NEUTRAL
Price
$25.88
Market Cap
$181.17B
Sector
Communication Services
AI Confidence
85%
VZ
Verizon Communications Inc.
NEUTRAL
Price
$46.38
Market Cap
$193.87B
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
T
8.51
VZ
11.42
Forward P/E
T
10.16
VZ
8.83
P/B Ratio
T
1.65
VZ
1.87
P/S Ratio
T
1.44
VZ
1.4
EV/EBITDA
T
7.7
VZ
7.25

Profitability

Gross Margin
T
59.55%
VZ
59.07%
Operating Margin
T
18.42%
VZ
20.99%
Profit Margin
T
17.47%
VZ
12.43%
ROE
T
18.8%
VZ
17.07%
ROA
T
4.08%
VZ
5.01%

Growth

Revenue Growth
T
3.6%
VZ
2.0%
Earnings Growth
T
-5.6%
VZ
-53.3%

Financial Health

Debt/Equity
T
1.24
VZ
1.75
Current Ratio
T
0.91
VZ
0.91
Quick Ratio
T
0.6
VZ
0.74

Dividends

Dividend Yield
T
4.29%
VZ
6.1%
Payout Ratio
T
27.38%
VZ
50.37%

AI Verdict

T NEUTRAL

AT&T presents a classic value trap profile: fundamentally stable but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock trades significantly below its Graham Number of $32.56, suggesting defensive undervaluation. However, negative earnings growth (-5.6% YoY) and a bearish technical trend (0/100) offset the attractive valuation. The company remains a strong cash-flow generator with a highly sustainable dividend payout ratio of 27.38%.

Strengths
Attractive valuation with a P/E of 8.51, well below sector averages
Strong profitability metrics including an 18.80% ROE and 17.47% profit margin
Highly sustainable dividend with a low payout ratio of 27.38%
Risks
Negative earnings growth both YoY (-5.6%) and Q/Q (-7.2%)
Bearish short-term technical momentum (1-month change of -9.1%)
High capital intensity and debt/equity ratio of 1.24
VZ NEUTRAL

Verizon presents as a classic 'bond-proxy' with a stable Piotroski F-Score of 6/9 and a current price ($46.38) trading slightly below its Graham Number ($47.57). While the company maintains a strong dividend profile and a consistent track record of earnings beats, it is hampered by stagnant revenue growth and a severe YoY earnings decline of 53.30%. The valuation is attractive on a P/E basis, but bearish insider sentiment and a 0/100 technical trend suggest a lack of immediate catalysts for growth.

Strengths
Attractive dividend yield of 6.10% with a sustainable payout ratio of 50.37%
Strong historical earnings track record with consistent beats over 25 quarters
Low valuation multiples (Forward P/E of 8.83) compared to the broader sector
Risks
Severe YoY earnings contraction of -53.30%
High leverage with a Debt/Equity ratio of 1.75
Liquidity concerns indicated by a Current Ratio of 0.91 (below 1.0)

Compare Another Pair

T vs VZ: Head-to-Head Comparison

This page compares AT&T Inc. (T) and Verizon Communications Inc. (VZ) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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