Better Buy: AT&T vs. Verizon
The giant telecommunication providers AT&T (NYSE: T) and Verizon Communications (NYSE: VZ) have been following comparable trajectories. After some debatable acquisitions of media assets over the last several years, both companies now rely on 5G to boost their revenue and sustain their dividends. But with its focused strategy and its safer balance sheet, one seems to be a better buy despite its higher valuation.
AT&T has been acquiring media assets to propose content and increase the stickiness of its wireless and broadband offerings. After its $49 billion purchase of DirecTV in 2015, the company finalized the acquisition of Time Warner for $85.4 billion in 2018. But with the spectacular growth of video streaming over the Internet, the company is facing the secular decline of its legacy TV business. During the last quarter, the number of premium TV subscribers decreased to 20.4 million, down 1.16 million compared to last year.
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Source Fool.com
