Better Buy: AT&T vs. T-Mobile US
Shares of AT&T (NYSE: T) and T-Mobile (NASDAQ: TMUS) (formally T-Mobile US), two of America's largest wireless carriers, have gone in opposite directions over the past three years.
AT&T's stock price tumbled about 20% in that three-year stretch as it struggled with its ongoing loss of pay TV users, tough competition in the wireless market, and its costly and unwieldy takeover of Time Warner. Even after factoring in reinvested dividends, AT&T's stock delivered a negative total return of 4%.
T-Mobile's stock price more than doubled as it pulled wireless subscribers away from AT&T and Verizon (NYSE: VZ). It also completed its merger with Sprint last April, which helped it surpass AT&T to become the country's second-largest wireless carrier after Verizon. T-Mobile doesn't pay a dividend, but it clearly impressed investors with its robust growth.
Source Fool.com
