They use very similar technology to provide customers with a feature rich multimedia TV, telephone, and internet experience. Technology Verizon has decided to deploy fiber optic connections directly to subscriber homes. This is called fiber-to-the-premises FTTP.
Due to increased competition in the space and consolidation between large companies in the telecom industry and the media industry, both companies are being forced to adapt and innovate to continue their success levels. With so many changes and adjustments being made in the industry and by its players, which stock is the one to own now?
The Industry In order to help answer this question, one must take a look at the industry that the two companies compete in.
The Telecom Industry is saturated with providers. There are no longer new and untapped markets for the companies to go enter, as almost everyone has a provider already, making the industry highly price sensitive.
One place that telecom companies can look to create growth and revenue increases is in the music and mobile streaming market.
The recent and continuing increases in music and video streaming by consumers on their mobile devices have been a source of growth for companies in the industry.
According to the Global Mobile Consumer Survey from Deloitte, there was a 19 percent increase among US consumer streaming of television or film in the last year, The survey also showed a 30 percent increase in year over year growth of music streaming.
Also, the number of consumers surveyed who said they streamed media nearly doubled. Current Capabilities of the space do not meet consumer interest. Closing the gap between those who want to and those who do use Mobile Payment should without a doubt be a goal for telecom companies that are looking for diversification and growth in revenue streams.
Its net margin is also very solid, along with its return on equity.
The stock has a projected sales growth of 3. Bottom Line The Telecom Industry is made up of a multitude of companies, some large and others not so much, with diverse revenue streams and each company has its own strengths and weaknesses.
This variety and diversification is a positive for the industry though, as it causes a fair amount of competition between each company, as well as drives each one to work hard, smart, and cost effectively, causing growth and innovation.
With pressure from competitors to grow and the many opportunities to do so, the players of Telecom are primed for success moving forward.
After evaluating these companies’ financial data, you will then decide which company’s stock is the better timberdesignmag.com section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. The Different Variables to Consider While Choosing Whether to Invest in Verizon or AT&T Companies. words. The Different Ways to Beak Away from Competition for Companies Which Are Struggling to Fight With Competitors in the Book Blue Ocean Strategy- How to Create Uncontested Market Space and Make Competition Irrelevant. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services Swimming in Different Video Streams Verizon will also invest in.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.Verizon is a strong company and its operations are moving in the right direction, but whether or not the stock is a buy ultimately comes down to what investors have to pay for it.
AT&T and Verizon offer fat yields of % and %, respectively, and are cheap right now. However, the expected growth in earnings and distributions is most likely to match the expected rate of. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services Swimming in Different Video Streams Verizon will also invest in.
Read about some of the biggest risks of investing in Verizon stock. While the company has a good dividend and value pricing, there are risks.
In essence, AT&T is a completely different company versus Verizon, whereas in the past one could not tell the difference. The end result of all these changes is expected growth of 12% this year. Verizon has chosen a slightly different path. In June , Verizon purchased AOL Inc. for approximately $ billion, with the aim of building digital and video platforms to drive future growth.