AT&T vs Verizon

Decided to add a telecom stock to my portfolio and it came down to AT&T (T) and Verizon (VZ). I did some research to determine which was a better buy and came to the conclusion that AT&T had more value and will continue to have more value than Verizon in the years coming, heres what aided my decision.

                          ATT               VZ

P/E:                    9.38x            30.21

ROA:                   7.62              4.9       (%)

ROE:                   18.68            8.92     (%)

DivY:                   5.43              5.16     (%)

PR:                      50.13            153.53  (%)

AD:                      1.70              1.93*

5yr Div G rate:      5.46              3.76        [Compounded]

Debt/Equity:         .58x              1.57

Debt/Assets:         .24x               .27

* - Vodafone owns a 45% stake in Verizon wireless and will begin collecting dividends in the year 2012 (assuming the world doesn’t end). They are expecting around a 5.5 billion dollar dividend that year taking 45% of Verizons assumed 12 billion dollar revenue. With a payout ratio of already over 150% I feel this could leave Verizon struggling to find good numbers and cause a cut in their dividend. So while their annualized dividend is currently larger, I feel that the Vodafone dividend combined with their already very high payout ratio will hit Verizon hard somewhere in 2012 or shortly after.

As you can see, AT&T beats VZ in every category except annualized dividend and their growth rate combined with Verizon's Vodafone dividend, I believe it wont be long until they take over that category as well. 

 - I am Long In T