Why Does AT&T Stock Cost Less Than A Slower-Growing Verizon?

Image from Pixabay AT&T (T) grows faster than Verizon, yet it trades at a far lower multiple of earnings. In its five-company peer group it ranks second on growth and margin but only third on its earnings multiple. Management calls that a disparity, and it has raised its buyback to take advantage of it. How Can AT&T Out-Grow Verizon And Still Trade Cheaper? Over the last twelve months AT&T grew revenue 2.6% and Verizon 1.4%, and both earned an operating margin just over 20%. Verizon trades at 12.4 times earnings, AT&T at 8.2 times. A buyer pays about half again as much for a dollar of Verizon's profit. T VZ TMUS CMCSA CHTR Market Cap ($ Bil) 176.2 200.4 181.9 81.0 15.4 PE Ratio 8.2 12.4 17.2 7.2 3.1 LTM Revenue Growth 2.6% 1.4% 9.7% 0.6% -1.