Better Buy: Spotify vs. Verizon
Despite both identifying as communications companies and both offering subscription services of some type, Spotify Technology (NYSE: SPOT) and Verizon Communications (NYSE: VZ) operate vastly different businesses. One provides music and podcasts through a streaming service, while the other offers telecommunications services.
This difference also holds tremendous implications for investors, as they must determine which company has positioned itself to deliver higher potential returns. Let's take a closer look at each company to help make the determination of which is the better buy right now.
The differences between the two companies go well beyond their roles in the media industry. Both also deal with vastly different conditions competitively. The nature of Verizon's business gives it a competitive advantage in the 5G realm. The cost of building such a telecommunications network will discourage others from competing with it and its rivals AT&T and T-Mobile US. Verizon spent approximately $18 billion in capital expenditures in each of the last two fiscal years to maintain and expand this competitive moat.
Source Fool.com
