WallStSmart

Verizon Communications Inc (VZ)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 1082% more annual revenue ($139.15B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 12.5%. WDC appears more attractively valued with a PEG of 0.58. WDC earns a higher WallStSmart Score of 80/100 (A-).

VZ

Strong Buy

69

out of 100

Grade: B-

Growth: 4.0Profit: 7.5Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.11

WDC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

VZSignificantly Overvalued (-27.1%)

Margin of Safety

-27.1%

Fair Value

$36.77

Current Price

$45.37

$8.60 premium

UndervaluedFair: $36.77Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VZ6 strengths · Avg: 8.5/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Market CapQuality
$196.54B9/10

Large-cap with strong market position

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Free Cash FlowQuality
$3.78B8/10

Generating 3.8B in free cash flow

WDC6 strengths · Avg: 10.0/10
Market CapQuality
$225.26B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
67.0%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
482.9%10/10

Earnings expanding 482.9% YoY

Areas to Watch

VZ4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Debt/EquityHealth
1.903/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WDC3 concerns · Avg: 3.3/10
P/E RatioValuation
39.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : VZ

The strongest argument for VZ centers on P/E Ratio, Market Cap, PEG Ratio. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bull Case : WDC

The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : VZ

The primary concerns for VZ are Revenue Growth, EPS Growth, Debt/Equity. Debt-to-equity of 1.90 is elevated, increasing financial risk.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.

Key Dynamics to Monitor

VZ profiles as a value stock while WDC is a growth play — different risk/reward profiles.

WDC carries more volatility with a beta of 2.20 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

VZ generates stronger free cash flow (3.8B), providing more financial flexibility.

Bottom Line

WDC scores higher overall (80/100 vs 69/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Exceptional Buy" and "Strong 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.

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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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