Better Buy: CenturyLink vs. Verizon
At first glance, CenturyLink (NYSE: CTL) and Verizon (NYSE: VZ) look like two tech stocks in the telecom industry with relatively little in common. CenturyLink remains a wireline company, while Verizon's attention has turned increasingly toward 5G wireless.
However, these one-time competitors have increasingly become collaborators. As both companies work to capitalize on the 5G opportunity, the question for investors likely hinges not so much on the future success of both telecom giants, but what investment best suits their needs.
CenturyLink has long served as a Verizon Wireless authorized agent. However, the most significant synergies between the two companies are tied to CenturyLink's core capability, fiber. Instead of fiber turning into the abandoned infrastructure left over from a bygone era, it may become more critical than ever. One fact overlooked is that 5G networks need fiber for connectivity. This plays right into CenturyLink's hands, as the company manages a 250,000-mile fiber network in the United States. Instead of fiber serving individuals and businesses directly, it will become an increasingly important part of network backhaul.
Source Fool.com
