WallStSmart

TIM Participacoes SA (TIMB)vsT-Mobile US Inc (TMUS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

T-Mobile US Inc generates 232% more annual revenue ($88.31B vs $26.62B). TIMB leads profitability with a 16.2% profit margin vs 12.4%. TMUS appears more attractively valued with a PEG of 0.80. TIMB earns a higher WallStSmart Score of 65/100 (B-).

TIMB

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.3Quality: 4.8
Piotroski: 5/9Altman Z: 1.70

TMUS

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TIMBUndervalued (+65.5%)

Margin of Safety

+65.5%

Fair Value

$78.62

Current Price

$26.21

$52.41 discount

UndervaluedFair: $78.62Overvalued
TMUSSignificantly Overvalued (-235.8%)

Margin of Safety

-235.8%

Fair Value

$66.10

Current Price

$211.36

$145.26 premium

UndervaluedFair: $66.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TIMB4 strengths · Avg: 8.0/10
P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

EPS GrowthGrowth
29.1%8/10

Earnings expanding 29.1% YoY

Free Cash FlowQuality
$2.92B8/10

Generating 2.9B in free cash flow

TMUS3 strengths · Avg: 8.7/10
Market CapQuality
$236.30B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Free Cash FlowQuality
$4.18B8/10

Generating 4.2B in free cash flow

Areas to Watch

TIMB4 concerns · Avg: 3.5/10
Price/BookValuation
13.7x4/10

Trading at 13.7x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

PEG RatioValuation
2.582/10

Expensive relative to growth rate

TMUS3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.993/10

Elevated debt levels

EPS GrowthGrowth
-26.6%2/10

Earnings declined 26.6%

Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : TIMB

The strongest argument for TIMB centers on P/E Ratio, Operating Margin, EPS Growth. Profitability is solid with margins at 16.2% and operating margin at 27.6%.

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 : TIMB

The primary concerns for TIMB are Price/Book, Revenue Growth, Altman Z-Score.

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

TMUS carries more volatility with a beta of 0.41 — expect wider price swings.

TMUS is growing revenue faster at 11.3% — sustainability is the question.

TMUS generates stronger free cash flow (4.2B), providing more financial flexibility.

Monitor TELECOM SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TIMB scores higher overall (65/100 vs 60/100), backed by strong 16.2% margins. Both earn "Strong Buy" and "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.

TIM Participacoes SA

COMMUNICATION SERVICES · TELECOM SERVICES · USA

TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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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