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Dycom vs. MasTec: Which Fiber Infrastructure Stock Is Better?
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Key Takeaways
MasTec gets the overall edge over Dycom on stronger momentum, diversification and growth drivers.
Dycom has faster organic communications growth, record backlog and a cheaper forward earnings valuation.
MasTec's record $21.4B backlog and broader data-center platform support a more balanced path to upside.
The accelerating buildout of fiber networks, data-center connectivity and other digital infrastructure is creating a multiyear opportunity for contractors with the scale and expertise to execute complex projects. Dycom Industries (DY - Free Report) is heavily exposed to communications infrastructure, particularly fiber-to-the-home, long-haul and middle-mile fiber, while MasTec (MTZ - Free Report) operates a broader infrastructure platform spanning communications, power delivery, clean energy, pipelines and mission-critical construction.
Both companies stand to benefit from rising fiber investment and AI-driven data-center demand, but their near-term operating trends differ. Dycom is showing stronger direct fiber momentum, while MasTec combines communications exposure with a more diversified infrastructure portfolio. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one has more upside potential now.
The Case for Dycom Stock
Dycom entered the second half of fiscal 2027 with strong operating momentum. Second-quarter revenues reached a record $2.01 billion, rising 45.6% year over year and 16.7% organically. Adjusted EBITDA increased 53.5% to $315.5 million, while adjusted earnings per share (EPS) climbed 45.3% to $5.29. Total backlog surged 53.2% to $12.24 billion, providing substantial visibility into future activity.
Fiber remains Dycom's biggest growth engine. Fiber-to-the-home revenues increased nearly 60% during the first half, while cloud migration, AI workloads and data-center expansion are fueling long-haul, middle-mile and high-strand interconnect demand. Management says contracted backlog tied specifically to long-haul, middle-mile and inside-the-fence fiber now exceeds $1 billion. The company believes the broader opportunity it previously sized at roughly $20 billion remains heavily weighted toward the latter part of the decade, giving Dycom a potentially long growth runway.
Dycom is also becoming less dependent on traditional communications work. The National Technology Integrators acquisition expands structured-cabling capabilities, while Power Solutions strengthens exposure to electrical systems for data centers. Management raised fiscal 2027 revenue guidance to $7.48-$7.66 billion and continues to expect consolidated adjusted EBITDA margin expansion.
However, near-term margin pressure deserves attention. Communications adjusted EBITDA margin fell 134 basis points (bps) to 13.6% as Dycom invested in workforce expansion, absorbed higher fuel costs and dealt with reduced operating leverage from wireless project delays. About $150 million of wireless revenues have shifted into fiscal 2028, although management says the overall program scope remains intact. Dycom also carries about $2.50 billion of notional net debt, although improving operating cash flow and free cash flow provide some support.
The Case for MasTec Stock
MasTec offers a broader infrastructure growth story. Second-quarter 2026 revenues increased 23% year over year to a record $4.4 billion, adjusted EBITDA rose 40% to $384 million and adjusted EPS advanced 49% to $2.22. Its 18-month backlog reached a record $21.4 billion, up 30% year over year, giving the company strong visibility across several infrastructure markets.
The biggest advantage is diversification. Weakness in Communications can be offset by Power Delivery, Pipeline Infrastructure and Clean Energy and Infrastructure, all of which are benefiting from grid modernization, power generation, data-center development and other critical-infrastructure spending. MasTec expects the majority of roughly $2.5 billion of recent backlog growth to benefit 2027 rather than 2026, pointing to another potential growth leg ahead.
The Superior Group acquisition further enhances MasTec's opportunity in data centers and mission-critical electrical infrastructure. Superior brings about 3,000 skilled employees and broadens MasTec's ability to combine electrical, telecom, civil and other infrastructure capabilities on large projects. Management raised 2026 guidance to $18.2 billion in revenues, $1.6 billion in adjusted EBITDA and $9.30 in adjusted EPS.
Still, MasTec's fiber business has near-term challenges. Communications revenues rose only 6.2% in the second quarter, while EBITDA declined 11.6% and margin fell to 8.2% from 9.9%. RDOF projects are rolling off, replacement wireline projects have been delayed and the next major wireless equipment cycle is not expected until next year. Management consequently reduced its Communications outlook despite remaining bullish on fiber and hyperscaler connectivity over the longer term.
Market Momentum Gives MasTec Stock the Lead
MasTec shares have gained 15.6% year to date (YTD), while Dycom stock has lost 8.8%. MTZ has also outperformed the Building Products - Heavy Construction industry's 10.3% gain, the broader Zacks Construction sector's 5.4% rise and the S&P 500's 11.7% advance. DY trails all three benchmarks.
The market is currently rewarding MasTec's diversified earnings growth and backlog visibility more than Dycom's strong but more concentrated fiber story.
Dycom vs MasTec Price Performance (YTD)
Image Source: Zacks Investment Research
Dycom Stock Holds the Valuation Advantage
Dycom trades at 16.72X forward 12-month earnings, below both MasTec's 21.68X and the industry's 19.08X. That gives DY a clear valuation advantage.
MasTec's premium appears partly justified by its broader exposure to power, data centers and other infrastructure markets. Dycom offers more valuation cushion if its fiber growth remains strong.
Dycom vs MasTec Valuation (P/E F12M)
Image Source: Zacks Investment Research
Earnings Estimates Send a Mixed Signal
Dycom's fiscal 2027 consensus estimate for EPS has edged up to $16.39 from $16.35 over the past 60 days, implying 36.9% growth, while the fiscal 2028 estimate slipped marginally to $19.94 from $19.95. Revenues are expected to rise 37.6% in fiscal 2027 and another 13.1% in fiscal 2028.
DY Estimate
Image Source: Zacks Investment Research
For MasTec, the 2026 EPS estimate has increased to $9.31 from $9.19 over the past 30 days, while the 2027 estimate has declined to $12.77 from $12.91. Still, projected EPS growth of 42.1% in 2026 and 37.2% in 2027 indicates strong earnings potential.
MTZ Estimate
Image Source: Zacks Investment Research
Which Stock Has Better Upside?
Dycom currently has the stronger pure-play fiber setup, faster organic communications growth and cheaper valuation. Its record backlog and expanding exposure to data-center interconnects strengthen the long-term case.
MasTec, however, gets the overall edge. Its superior YTD performance, diversified backlog, strengthening data-center platform and substantial earnings growth expected through 2027 provide a more balanced path to upside. Importantly, MasTec currently carries a Zacks Rank #3 (Hold) compared with Dycom's Zacks Rank #4 (Sell). While neither ranking signals aggressive buying, MasTec's stronger market momentum and broader growth drivers make it the more attractive choice between the two stocks at present.
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Dycom vs. MasTec: Which Fiber Infrastructure Stock Is Better?
Key Takeaways
The accelerating buildout of fiber networks, data-center connectivity and other digital infrastructure is creating a multiyear opportunity for contractors with the scale and expertise to execute complex projects. Dycom Industries (DY - Free Report) is heavily exposed to communications infrastructure, particularly fiber-to-the-home, long-haul and middle-mile fiber, while MasTec (MTZ - Free Report) operates a broader infrastructure platform spanning communications, power delivery, clean energy, pipelines and mission-critical construction.
Both companies stand to benefit from rising fiber investment and AI-driven data-center demand, but their near-term operating trends differ. Dycom is showing stronger direct fiber momentum, while MasTec combines communications exposure with a more diversified infrastructure portfolio. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one has more upside potential now.
The Case for Dycom Stock
Dycom entered the second half of fiscal 2027 with strong operating momentum. Second-quarter revenues reached a record $2.01 billion, rising 45.6% year over year and 16.7% organically. Adjusted EBITDA increased 53.5% to $315.5 million, while adjusted earnings per share (EPS) climbed 45.3% to $5.29. Total backlog surged 53.2% to $12.24 billion, providing substantial visibility into future activity.
Fiber remains Dycom's biggest growth engine. Fiber-to-the-home revenues increased nearly 60% during the first half, while cloud migration, AI workloads and data-center expansion are fueling long-haul, middle-mile and high-strand interconnect demand. Management says contracted backlog tied specifically to long-haul, middle-mile and inside-the-fence fiber now exceeds $1 billion. The company believes the broader opportunity it previously sized at roughly $20 billion remains heavily weighted toward the latter part of the decade, giving Dycom a potentially long growth runway.
Dycom is also becoming less dependent on traditional communications work. The National Technology Integrators acquisition expands structured-cabling capabilities, while Power Solutions strengthens exposure to electrical systems for data centers. Management raised fiscal 2027 revenue guidance to $7.48-$7.66 billion and continues to expect consolidated adjusted EBITDA margin expansion.
However, near-term margin pressure deserves attention. Communications adjusted EBITDA margin fell 134 basis points (bps) to 13.6% as Dycom invested in workforce expansion, absorbed higher fuel costs and dealt with reduced operating leverage from wireless project delays. About $150 million of wireless revenues have shifted into fiscal 2028, although management says the overall program scope remains intact. Dycom also carries about $2.50 billion of notional net debt, although improving operating cash flow and free cash flow provide some support.
The Case for MasTec Stock
MasTec offers a broader infrastructure growth story. Second-quarter 2026 revenues increased 23% year over year to a record $4.4 billion, adjusted EBITDA rose 40% to $384 million and adjusted EPS advanced 49% to $2.22. Its 18-month backlog reached a record $21.4 billion, up 30% year over year, giving the company strong visibility across several infrastructure markets.
The biggest advantage is diversification. Weakness in Communications can be offset by Power Delivery, Pipeline Infrastructure and Clean Energy and Infrastructure, all of which are benefiting from grid modernization, power generation, data-center development and other critical-infrastructure spending. MasTec expects the majority of roughly $2.5 billion of recent backlog growth to benefit 2027 rather than 2026, pointing to another potential growth leg ahead.
The Superior Group acquisition further enhances MasTec's opportunity in data centers and mission-critical electrical infrastructure. Superior brings about 3,000 skilled employees and broadens MasTec's ability to combine electrical, telecom, civil and other infrastructure capabilities on large projects. Management raised 2026 guidance to $18.2 billion in revenues, $1.6 billion in adjusted EBITDA and $9.30 in adjusted EPS.
Still, MasTec's fiber business has near-term challenges. Communications revenues rose only 6.2% in the second quarter, while EBITDA declined 11.6% and margin fell to 8.2% from 9.9%. RDOF projects are rolling off, replacement wireline projects have been delayed and the next major wireless equipment cycle is not expected until next year. Management consequently reduced its Communications outlook despite remaining bullish on fiber and hyperscaler connectivity over the longer term.
Market Momentum Gives MasTec Stock the Lead
MasTec shares have gained 15.6% year to date (YTD), while Dycom stock has lost 8.8%. MTZ has also outperformed the Building Products - Heavy Construction industry's 10.3% gain, the broader Zacks Construction sector's 5.4% rise and the S&P 500's 11.7% advance. DY trails all three benchmarks.
The market is currently rewarding MasTec's diversified earnings growth and backlog visibility more than Dycom's strong but more concentrated fiber story.
Dycom vs MasTec Price Performance (YTD)
Image Source: Zacks Investment Research
Dycom Stock Holds the Valuation Advantage
Dycom trades at 16.72X forward 12-month earnings, below both MasTec's 21.68X and the industry's 19.08X. That gives DY a clear valuation advantage.
MasTec's premium appears partly justified by its broader exposure to power, data centers and other infrastructure markets. Dycom offers more valuation cushion if its fiber growth remains strong.
Dycom vs MasTec Valuation (P/E F12M)
Image Source: Zacks Investment Research
Earnings Estimates Send a Mixed Signal
Dycom's fiscal 2027 consensus estimate for EPS has edged up to $16.39 from $16.35 over the past 60 days, implying 36.9% growth, while the fiscal 2028 estimate slipped marginally to $19.94 from $19.95. Revenues are expected to rise 37.6% in fiscal 2027 and another 13.1% in fiscal 2028.
DY Estimate
Image Source: Zacks Investment Research
For MasTec, the 2026 EPS estimate has increased to $9.31 from $9.19 over the past 30 days, while the 2027 estimate has declined to $12.77 from $12.91. Still, projected EPS growth of 42.1% in 2026 and 37.2% in 2027 indicates strong earnings potential.
MTZ Estimate
Image Source: Zacks Investment Research
Which Stock Has Better Upside?
Dycom currently has the stronger pure-play fiber setup, faster organic communications growth and cheaper valuation. Its record backlog and expanding exposure to data-center interconnects strengthen the long-term case.
MasTec, however, gets the overall edge. Its superior YTD performance, diversified backlog, strengthening data-center platform and substantial earnings growth expected through 2027 provide a more balanced path to upside. Importantly, MasTec currently carries a Zacks Rank #3 (Hold) compared with Dycom's Zacks Rank #4 (Sell). While neither ranking signals aggressive buying, MasTec's stronger market momentum and broader growth drivers make it the more attractive choice between the two stocks at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.