WallStSmart

TIM Participacoes SA (TIMB)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 419% more annual revenue ($138.19B vs $26.62B). TIMB leads profitability with a 16.2% profit margin vs 12.4%. VZ appears more attractively valued with a PEG of 1.23. 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

VZ

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.11
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
VZSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$27.61

Current Price

$50.37

$22.76 premium

UndervaluedFair: $27.61Overvalued

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

VZ5 strengths · Avg: 8.4/10
Market CapQuality
$214.72B10/10

Mega-cap, among the largest globally

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Free Cash FlowQuality
$4.37B8/10

Generating 4.4B 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

VZ4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-53.3%2/10

Earnings declined 53.3%

Altman Z-ScoreHealth
1.112/10

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 : VZ

The strongest argument for VZ centers on Market Cap, P/E Ratio, Price/Book. PEG of 1.23 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 : VZ

The primary concerns for VZ are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

TIMB carries more volatility with a beta of 0.31 — expect wider price swings.

TIMB is growing revenue faster at 4.4% — sustainability is the question.

VZ generates stronger free cash flow (4.4B), providing more financial flexibility.

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

Bottom Line

TIMB scores higher overall (65/100 vs 62/100), 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.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

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