Better Buy: Verizon Communications vs. AT&T
Verizon Communications (NYSE: VZ) and AT&T (NYSE: T) have long operated as each other's main competitors. As longtime providers of telecom services, they have battled to attract the same customers since consumers began switching to mobile phones. Now, together with T-Mobile, they continue to compete for wireless business as the telecom industry transitions to 5G.
The approaches pursued by Verizon and AT&T have taken each of these telecom stocks on different trajectories. These paths could determine which stock offers investors more profit potential going forward.
Despite these companies making up two-thirds of a 5G oligopoly, these businesses differ in surprising ways. AT&T invested outside of 5G, acquiring DirecTV and Time Warner in recent years in the hopes of gaining market share in the content business. However, streaming services have undercut pricing on satellite TV services. Moreover, AT&T's content subsidiary, now known as WarnerMedia, faces stiff competition from the likes of Netflix and Disney.
Source Fool.com
