I received a question from a subscriber about Verizon asking if I would consider picking up Verizon’s stock over AT&T. I started this analysis for the December 2009 investment newsletter but did not get a chance to finish it back then and hence am publishing it as a blog post instead. While his question was only about Verizon and AT&T, I included both Sprint and Comcast in the comparison tables listed in the valuation section below. With the baby bells increasingly moving into bundled offerings that include TV service and Comcast offering phone service, I figured it would be a good idea to see how Comcast stacks up against the baby bells.
Growth for Verizon and AT&T is being driven primarily by wireless and service bundles that include TV, phone, internet service and cell phone even as they are losing wireline business. The focus of this post is the valuation comparison tables at the bottom but I have briefly touched upon the two factors that are driving growth at these companies.