Telephone and Data Systems Inc (TDS)vsT-Mobile US Inc (TMUS)
TDS
Telephone and Data Systems Inc
$43.11
+0.12%
COMMUNICATION SERVICES · Cap: $4.90B
TMUS
T-Mobile US Inc
$211.36
+0.05%
COMMUNICATION SERVICES · Cap: $236.30B
Smart Verdict
WallStSmart Research — data-driven comparison
T-Mobile US Inc generates 7090% more annual revenue ($88.31B vs $1.23B). TMUS leads profitability with a 12.4% profit margin vs -0.5%. TMUS appears more attractively valued with a PEG of 0.80. TMUS earns a higher WallStSmart Score of 60/100 (C).
TDS
Hold40
out of 100
Grade: D
TMUS
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1638.9%
Fair Value
$2.65
Current Price
$43.11
$40.46 premium
Margin of Safety
-235.8%
Fair Value
$66.10
Current Price
$211.36
$145.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Growing faster than its price suggests
Generating 4.2B in free cash flow
Areas to Watch
ROE of 2.7% — below average capital efficiency
Operating margin of 2.5%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Earnings declined 26.6%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : TDS
The strongest argument for TDS centers on Price/Book. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : TMUS
The strongest argument for TMUS centers on Market Cap, PEG Ratio, Free Cash Flow. Revenue growth of 11.3% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bear Case : TDS
The primary concerns for TDS are Return on Equity, Operating Margin, PEG Ratio. A P/E of 110.4x leaves little room for execution misses.
Bear Case : TMUS
The primary concerns for TMUS are Debt/Equity, EPS Growth, Altman Z-Score. Debt-to-equity of 1.99 is elevated, increasing financial risk.
Key Dynamics to Monitor
TDS profiles as a turnaround stock while TMUS is a value play — different risk/reward profiles.
TMUS carries more volatility with a beta of 0.41 — expect wider price swings.
TDS is growing revenue faster at 12.0% — sustainability is the question.
TMUS generates stronger free cash flow (4.2B), providing more financial flexibility.
Bottom Line
TMUS scores higher overall (60/100 vs 40/100) and 11.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Telephone and Data Systems Inc
COMMUNICATION SERVICES · TELECOM SERVICES · USA
Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. The company is headquartered in Chicago, Illinois.
T-Mobile US Inc
COMMUNICATION SERVICES · TELECOM SERVICES · USA
T-Mobile US, Inc., doing business under the global brand name T-Mobile, is an American wireless network operator. Its headquarters are located in Bellevue, Washington, in the Seattle metropolitan area and Overland Park, Kansas, in the Kansas City metropolitan area.
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