WallStSmart

AT&T Inc. (T)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 9% more annual revenue ($138.90B vs $127.24B). T leads profitability with a 16.9% profit margin vs 11.6%. VZ appears more attractively valued with a PEG of 0.89. T earns a higher WallStSmart Score of 68/100 (B-).

T

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.87

VZ

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 7.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TUndervalued (+6.1%)

Margin of Safety

+6.1%

Fair Value

$27.74

Current Price

$25.40

$2.34 discount

UndervaluedFair: $27.74Overvalued
VZSignificantly Overvalued (-30.6%)

Margin of Safety

-30.6%

Fair Value

$37.00

Current Price

$48.09

$11.09 premium

UndervaluedFair: $37.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

T5 strengths · Avg: 8.6/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Market CapQuality
$178.57B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

Free Cash FlowQuality
$5.17B8/10

Generating 5.2B in free cash flow

VZ6 strengths · Avg: 8.3/10
Market CapQuality
$210.27B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

Free Cash FlowQuality
$6.43B8/10

Generating 6.4B in free cash flow

Areas to Watch

T4 concerns · Avg: 3.3/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Debt/EquityHealth
1.473/10

Elevated debt levels

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

VZ4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.813/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-22.0%2/10

Earnings declined 22.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : T

The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 24.8%.

Bull Case : VZ

The strongest argument for VZ centers on Market Cap, PEG Ratio, P/E Ratio. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : T

The primary concerns for T are PEG Ratio, Revenue Growth, Debt/Equity.

Bear Case : VZ

The primary concerns for VZ are Debt/Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 1.81 is elevated, increasing financial risk.

Key Dynamics to Monitor

T profiles as a value stock while VZ is a declining play — different risk/reward profiles.

T carries more volatility with a beta of 0.43 — expect wider price swings.

T is growing revenue faster at 2.3% — sustainability is the question.

VZ generates stronger free cash flow (6.4B), providing more financial flexibility.

Bottom Line

T scores higher overall (68/100 vs 66/100), backed by strong 16.9% margins. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AT&T Inc.

COMMUNICATION SERVICES · TELECOM SERVICES · USA

AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

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