AT&T vs Verizon
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KIRA’s take AI analyst
I put AT&T and Verizon side by side, using each one’s latest annual report. Here is what stands out:
- Verizon is the larger business, with $138.2B of revenue in fiscal 2025 against $125.6B for AT&T.
- Verizon kept more of each dollar of sales as operating profit (21.2% operating margin, against 19.2%).
- AT&T turned more of its sales into free cash flow (15.5% FCF margin, against 14.6%).
- Verizon earned a higher return on the capital invested in it (9.4%, against 8.7%).
- Investors pay more for each dollar of AT&T’s earnings: a P/E of 11.3x against 11.2x for Verizon.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AT&T
T
7/10
Revenue growthNet marginFCF marginReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
Verizon
VZ
3/10
5-year growthOperating marginReturn on capital
Side by side
Best in the row
| Latest fiscal year | T FY25 | VZ FY25 |
|---|---|---|
| Size | ||
| Market cap | $142.7B | $179.8B |
| Revenue | $125.6B | $138.2B |
| Free cash flow | $19.4B | $20.1B |
| Net income | $22.0B | $17.2B |
| Growth | ||
| Revenue growth | 2.7% | 2.5% |
| 5-year growth | −2.6% | 1.5% |
| Share count change | −0.4% | 0.2% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 19.2% | 21.2% |
| Net margin | 17.5% | 12.4% |
| FCF margin | 15.5% | 14.6% |
| Return on capital | 8.7% | 9.4% |
| Return on equity | 17.9% | 16.7% |
| Balance sheet | ||
| Net debt | $117.9B | $139.1B |
| Net debt / EBITDA | 2.6x | 2.9x |
| Dividends and buybacks | $12.7B | $11.5B |
| Valuation & quality | ||
| P/E | 11.3x | 11.2x |
| Piotroski F-score | 7 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.