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Comcast vs. Verizon: Which Telecom Stock is a Better Buy Right Now?
Read MoreHide Full Article
Key Takeaways
Verizon is driving customer growth through pricing flexibility and expanded fiber network investments.
Comcast's rollout of DOCSIS 4.0 enables multi-gigabit speeds over its existing broadband infrastructure.
CMCSA's diversified business model supports stability amid macroeconomic pressures.
Verizon Communications, Inc. (VZ - Free Report) and Comcast Corporation (CMCSA - Free Report) are major players in the telecommunications market. Verizon, the leading wireless carrier in the United States, delivers communication services to a vast customer base across the public sector, small and medium businesses and global enterprises as well. Comcast, a global media and technology company, is a premier provider of cable television, broadband and mobile connectivity services. It operates under the Xfinity and Comcast brands in the United States and the Sky brand in Europe.
The U.S. telecommunication industry in 2025 is highly competitive and rapidly evolving. Rapid 5G adoption across industries, growing demand for high-speed broadband to support bandwidth-intensive applications and AI-driven network optimization are primarily driving this evolution.
The Case for Verizon
Verizon has been aggressively forging ahead to expand its fiber-optic networks to support 4G LTE and 5G wireless standards as well as wireline connections. Its offering of various mix and match pricing in both wireless and home broadband plans is driving solid customer additions. The company has also witnessed increased adoption of 5G devices and premium unlimited plans. Verizon’s latest three-year price lock guarantee for all its myPlan and myHome network plans ensures that the core monthly plan price for calling, data and texting will not change for a three-year period, excluding taxes, fees and perks. It enrolled all existing customers automatically, and whenever a client opts for a new plan, the price lock is reset for the next 3 years. Such a client-focused strategy is designed to woo new customers and retain existing ones amid a challenging macroeconomic environment.
Stiff competition from major players such as AT&T, Inc. (T - Free Report) , T-Mobile US and Comcast is weighing on margins. AT&T has accelerated fiber broadband expansion backed by its multi-dimensional approach, which includes improving its in-region fiber network, public-private partnerships, commercial open access agreements and strategic acquisitions. This is expected to intensify competition in the fiber broadband space. Verizon has been incurring high capital expenditure in order to support the launch and continued build-out of its 5G Ultra-Wideband network, and the deployment of significant fiber assets across the country. It remains unclear if and when a reasonable return can be achieved from such investments.
Amid intensifying competition, Verizon is taking several initiatives to develop new use cases for its comprehensive network portfolio and open new opportunities for revenue generation. The company recently introduced network slicing in Verizon Frontline in 20 new major markets, bringing the total tally to 50 major markets, including New York, Washington, D.C, Cincinnati, Ohio and several others. The offering includes dedicated 5G wideband capacity reserved exclusively for first responders, and the network slicing feature allows for optimization of data traffic for critical applications and devices. This is a game-changer for first responders nationwide, as the solution significantly boosts the reliability of mission-critical communications. Such initiatives bode well for long-term sustainable growth.
The Case for Comcast
Comcast Xfinity is one of the widely accessible broadband services in the country. Its broadband infrastructure in the United States is based on a Hybrid Fiber-Coaxial (HFC) network, which offers the required flexibility and scalability to expand network coverage and capacity. Use of DOCSIS 3.1 across the entire domestic footprint facilitates delivery of gigabit-plus downstream broadband speeds to residential and business customers. The company also provides fiber-to-the-premises broadband with a symmetrical speed up to 10 Gbps to residential customers.
The company is also steadily rolling out the DOCSIS 4.0 technology, which is allowing the company to deliver multigigabit symmetrical broadband speeds over our existing HFC network. Comcast is also investing in virtualization and automation of various core network functions. This is expanding network capacity, ensuring proactive detection of any network issues before they impact end users. Focus on improving operational efficiency is a tailwind. It is also collaborating with local, state and federal agencies to expand its service availability to underserved communities.
Comcast is also actively identifying and addressing customer pain points to accelerate the adoption of Xfinity internet services. The company introduced a Five-Year Price Guarantee for Xfinity Internet Customers, which means rates are locked for five years and no annual contract is needed. That simplifies the pricing structure and addresses two major pain points: rising cost and transparency.
Comcast’s diverse revenue stream that goes beyond the connectivity business underscores the resiliency of its business model. The company continues to invest significantly in existing and new theme park attractions, hotels and infrastructure. Its Studio business includes NBCUniversal, Sky film, television studio production and distribution operations. Comcast’s Peacock streaming service is witnessing a healthy subscriber momentum. During the first quarter of 2025, Peacock’s paid subscribers increased 20.6% year over year to 41 million.
However, macroeconomic challenges, inflation and the threat of a looming recession don’t bode well for Comcast’s consumer-driven businesses, including Studios and Theme Parks. AT&T is set to acquire Lumen’s fiber business, while Verizon is acquiring Frontier to expand its fiber footprint. Comcast will likely face stronger competition in the fiber broadband space from AT&T and Verizon. Comcast has to accelerate network upgradation and improve customer service to retain and expand its user base. This will likely strain margins in the near term.
How Do Zacks Estimates Compare for VZ & CMCSA?
The Zacks Consensus Estimate for Verizon’s 2025 sales and EPS implies year-over-year growth of 1.7% and 2.18%, respectively. The EPS estimate for 2025 has been trending southward over the past 60 days, while the 2026 EPS estimate has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Comcast’s 2025 sales indicates a decline of 1.35% year over year, while EPS is projected to grow 0.46%. The EPS estimate of 2025 has been trending northward over the past 60 days, while the EPS estimate of 2026 is declining.
Image Source: Zacks Investment Research
Price Performance & Valuation of VZ & CMCSA
Over the past year, Verizon has gained 4.2% while Comcast has declined 6.3% over the same period.
Image Source: Zacks Investment Research
Comcast looks more attractive than Verizon from a valuation standpoint. Going by the price/earnings ratio, Comcast’s shares currently trade at 7.64 forward earnings, lower than 8.77 for Verizon.
Both companies are focusing on expanding their fiber broadband infrastructure and expanding their customer base in the upcoming quarters. However, both Verizon and Comcast’s fiber broadband business is affected by increasing competition in the industry. Comcast’s diverse revenue stream, which includes streaming (Peacock), and theme parks businesses, along with its connectivity vertical, offers greater resiliency. Hence, with an attractive valuation and diverse portfolio offerings, Comcast appears to be a better investment option right now.
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Comcast vs. Verizon: Which Telecom Stock is a Better Buy Right Now?
Key Takeaways
Verizon Communications, Inc. (VZ - Free Report) and Comcast Corporation (CMCSA - Free Report) are major players in the telecommunications market. Verizon, the leading wireless carrier in the United States, delivers communication services to a vast customer base across the public sector, small and medium businesses and global enterprises as well. Comcast, a global media and technology company, is a premier provider of cable television, broadband and mobile connectivity services. It operates under the Xfinity and Comcast brands in the United States and the Sky brand in Europe.
The U.S. telecommunication industry in 2025 is highly competitive and rapidly evolving. Rapid 5G adoption across industries, growing demand for high-speed broadband to support bandwidth-intensive applications and AI-driven network optimization are primarily driving this evolution.
The Case for Verizon
Verizon has been aggressively forging ahead to expand its fiber-optic networks to support 4G LTE and 5G wireless standards as well as wireline connections. Its offering of various mix and match pricing in both wireless and home broadband plans is driving solid customer additions. The company has also witnessed increased adoption of 5G devices and premium unlimited plans. Verizon’s latest three-year price lock guarantee for all its myPlan and myHome network plans ensures that the core monthly plan price for calling, data and texting will not change for a three-year period, excluding taxes, fees and perks. It enrolled all existing customers automatically, and whenever a client opts for a new plan, the price lock is reset for the next 3 years. Such a client-focused strategy is designed to woo new customers and retain existing ones amid a challenging macroeconomic environment.
Stiff competition from major players such as AT&T, Inc. (T - Free Report) , T-Mobile US and Comcast is weighing on margins. AT&T has accelerated fiber broadband expansion backed by its multi-dimensional approach, which includes improving its in-region fiber network, public-private partnerships, commercial open access agreements and strategic acquisitions. This is expected to intensify competition in the fiber broadband space. Verizon has been incurring high capital expenditure in order to support the launch and continued build-out of its 5G Ultra-Wideband network, and the deployment of significant fiber assets across the country. It remains unclear if and when a reasonable return can be achieved from such investments.
Amid intensifying competition, Verizon is taking several initiatives to develop new use cases for its comprehensive network portfolio and open new opportunities for revenue generation. The company recently introduced network slicing in Verizon Frontline in 20 new major markets, bringing the total tally to 50 major markets, including New York, Washington, D.C, Cincinnati, Ohio and several others. The offering includes dedicated 5G wideband capacity reserved exclusively for first responders, and the network slicing feature allows for optimization of data traffic for critical applications and devices. This is a game-changer for first responders nationwide, as the solution significantly boosts the reliability of mission-critical communications. Such initiatives bode well for long-term sustainable growth.
The Case for Comcast
Comcast Xfinity is one of the widely accessible broadband services in the country. Its broadband infrastructure in the United States is based on a Hybrid Fiber-Coaxial (HFC) network, which offers the required flexibility and scalability to expand network coverage and capacity. Use of DOCSIS 3.1 across the entire domestic footprint facilitates delivery of gigabit-plus downstream broadband speeds to residential and business customers. The company also provides fiber-to-the-premises broadband with a symmetrical speed up to 10 Gbps to residential customers.
The company is also steadily rolling out the DOCSIS 4.0 technology, which is allowing the company to deliver multigigabit symmetrical broadband speeds over our existing HFC network. Comcast is also investing in virtualization and automation of various core network functions. This is expanding network capacity, ensuring proactive detection of any network issues before they impact end users. Focus on improving operational efficiency is a tailwind. It is also collaborating with local, state and federal agencies to expand its service availability to underserved communities.
Comcast is also actively identifying and addressing customer pain points to accelerate the adoption of Xfinity internet services. The company introduced a Five-Year Price Guarantee for Xfinity Internet Customers, which means rates are locked for five years and no annual contract is needed. That simplifies the pricing structure and addresses two major pain points: rising cost and transparency.
Comcast’s diverse revenue stream that goes beyond the connectivity business underscores the resiliency of its business model. The company continues to invest significantly in existing and new theme park attractions, hotels and infrastructure. Its Studio business includes NBCUniversal, Sky film, television studio production and distribution operations. Comcast’s Peacock streaming service is witnessing a healthy subscriber momentum. During the first quarter of 2025, Peacock’s paid subscribers increased 20.6% year over year to 41 million.
However, macroeconomic challenges, inflation and the threat of a looming recession don’t bode well for Comcast’s consumer-driven businesses, including Studios and Theme Parks. AT&T is set to acquire Lumen’s fiber business, while Verizon is acquiring Frontier to expand its fiber footprint. Comcast will likely face stronger competition in the fiber broadband space from AT&T and Verizon. Comcast has to accelerate network upgradation and improve customer service to retain and expand its user base. This will likely strain margins in the near term.
How Do Zacks Estimates Compare for VZ & CMCSA?
The Zacks Consensus Estimate for Verizon’s 2025 sales and EPS implies year-over-year growth of 1.7% and 2.18%, respectively. The EPS estimate for 2025 has been trending southward over the past 60 days, while the 2026 EPS estimate has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Comcast’s 2025 sales indicates a decline of 1.35% year over year, while EPS is projected to grow 0.46%. The EPS estimate of 2025 has been trending northward over the past 60 days, while the EPS estimate of 2026 is declining.
Image Source: Zacks Investment Research
Price Performance & Valuation of VZ & CMCSA
Over the past year, Verizon has gained 4.2% while Comcast has declined 6.3% over the same period.
Image Source: Zacks Investment Research
Comcast looks more attractive than Verizon from a valuation standpoint. Going by the price/earnings ratio, Comcast’s shares currently trade at 7.64 forward earnings, lower than 8.77 for Verizon.
Image Source: Zacks Investment Research
VZ or CMCSA: Which is a Better Pick?
Verizon and Comcast carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies are focusing on expanding their fiber broadband infrastructure and expanding their customer base in the upcoming quarters. However, both Verizon and Comcast’s fiber broadband business is affected by increasing competition in the industry. Comcast’s diverse revenue stream, which includes streaming (Peacock), and theme parks businesses, along with its connectivity vertical, offers greater resiliency. Hence, with an attractive valuation and diverse portfolio offerings, Comcast appears to be a better investment option right now.