How Does AT&T Stock Stack Up Against Its Peers?
AT&T‘s stock has posted modest returns over the past year, slightly trailing Verizon but ahead of several key competitors. How does it measure up against peers navigating a dynamic telecom environment, especially with the industry transitioning into an era of AI transformation? A closer look reveals strong free cash flow generation and attractive valuation support. However, moderate revenue growth and operating margins that trail some rivals suggest a more constrained upside amidst evolving industry challenges, including intensified competition and the need for significant infrastructure investment in 5G and fiber.
- AT&T’s 19.5% operating margin is strong but trails CHTR’s 24.5%, reflecting AT&T’s intense fiber network investment.
- AT&T’s 2.0% revenue growth lags 5G-strong VZ, TMUS, CMCSA, yet fiber deployment outpaces declining wireline for CHTR, LUMN.
- AT&T’s 3.0% stock gain and 7.7 PE signal undervaluation, yet peers VZ, LUMN had stronger returns despite telecom’s rate sensitivity.
Here’s how AT&T stacks up across size, valuation, and profitability versus key peers.
| T | VZ | TMUS | CMCSA | CHTR | LUMN | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 172.2 | 166.6 | 209.3 | 105.7 | 25.3 | 9.1 |
| Revenue ($ Bil) | 124.5 | 137.5 | 85.8 | 124.2 | 55.2 | 12.7 |
| PE Ratio | 7.7 | 8.4 | 17.6 | 4.6 | 4.8 | -5.5 |
| LTM Revenue Growth | 2.0% | 2.4% | 7.3% | 2.5% | 1.0% | -4.6% |
| LTM Operating Margin | 19.5% | 23.0% | 22.6% | 18.1% | 24.5% | 1.3% |
| LTM FCF Margin | 16.0% | 15.0% | 16.1% | 13.4% | 7.8% | 9.7% |
| 12M Market Return | 3.0% | 4.2% | -14.5% | -16.1% | -50.0% | 80.3% |
For more details on AT&T, read Buy or Sell T Stock. Below we compare T’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| T | 2.0% | -0.1% | 1.4% | -9.9% |
| VZ | 2.4% | 0.6% | -2.1% | 2.4% |
| TMUS | 7.3% | 3.6% | -1.3% | -0.7% |
| CMCSA | 2.5% | 1.8% | 0.1% | 4.3% |
| CHTR | 1.0% | 0.9% | 1.1% | 4.5% |
| LUMN | -4.6% | -10.0% | -16.7% | -11.2% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| T | 19.5% | 19.7% | 20.1% | 19.0% |
| VZ | 23.0% | 21.3% | 21.4% | 22.3% |
| TMUS | 22.6% | 22.1% | 18.1% | 10.2% |
| CMCSA | 18.1% | 18.8% | 19.2% | 18.6% |
| CHTR | 24.5% | 24.0% | 22.9% | 22.7% |
| LUMN | 1.3% | 3.6% | 8.4% | 18.8% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| T | 7.7 | 16.3 | 11.4 | -14.1 |
| VZ | 8.4 | 9.8 | 14.5 | 7.5 |
| TMUS | 17.6 | 20.9 | 31.5 | 77.4 |
| CMCSA | 4.6 | 7.2 | 10.1 | 36.0 |
| CHTR | 4.8 | 5.9 | 11.2 | 12.4 |
| LUMN | -5.5 | -139.5 | -0.5 | -1.2 |
Still not sure about T stock? Consider portfolio approach.
Stock Picking Falls Short Against Multi Asset Portfolios
Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices