AT&T vs. Comcast: Which Telecom Stock is a Better Buy Right Now?

AT&T Inc. T and Comcast Corporation CMCSA are major players in the telecommunications industry. Operating as one the largest wireless service provider in North America, AT&T offers a vast array of communication and business solutions that include wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale and cloud-based services.

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. Growing 5G adoption across several sectors, increasing demand for high-speed broadband to support high bandwidth-intensive applications and AI-driven network optimization are mainly driving this evolution.

The Case for Comcast

Comcast is placing strong emphasis on value, reliability, and improved experience to drive user engagement in its Xfinity internet offerings. The company has rolled out its Everyday Pricing (EDP) structure for Xfinity Internet with four simple national Internet tiers offering unlimited data and the advanced Xfinity WiFi Gateway. This ensures greater simplicity, transparency with no hidden additional cost. Xfinity WiFi Gateway comes with a cybersecurity protection and the redesigned Xfinity app allow customers to customize their WiFi experience at home as per their distinct requirements.

In the first quarter, the company also introduced free speed upgrades for Xfinity Internet increasing upload speeds by up to 100% and enhancing downloads across most tiers, backed by its fiber-based network covering over 64 million homes. Its five-year price guarantee for new Xfinity Internet customers ensuring unlimited data, a high-performance gateway and flat monthly pricing with no contract.

The company is witnessing weakness in the Connectivity & Platforms segment. By undertaking various customer-oriented strategy, the company is aiming to turn around the tide. Comcast is also expanding its wireless service Xfinity Mobile brand to boost its competitive edge in the U.S. wireless market. Comcast’s wireless service which operates on Verizon Communication's VZ cellular network has 23 million hotspots across U.S. The company anticipates healthy momentum in the wireless vertical in 2025. 

However, intensifying competition in the industry is weighing on growth.  Declining domestic broadband customers and domestic video customers remains a major concern. Moreover, uncertain macroeconomic environment, the threat of a looming recession doesn’t bode well for Comcast’s prospects for upcoming quarters.

The Case for AT&T

AT&T is benefiting from healthy traction in its wireless business with growing user engagement and lower churn rate. Growing demand for its higher tiered unlimited plans is a major growth driver. The company’s aggressively expanding its fiber network infrastructure to capitalize on the growing demand for rapid fiber connectivity across U.S. specifically in rural and underserved areas. AT&T recently announced it’s fiber network has reached 30 million consumer and business locations around the country.

It has also inked a definitive agreement to acquire Lumen’s fiber business which will add 1 million fiber customers and 4 million fiber locations across 11 states in U.S. It has also inked a definitive agreement with open-access fiber infrastructure provider PRIME FiBER to deliver wholesale fiber broadband services in Arizona. The company aims to reach 60 million fiber locations in U.S. by 2030. AT&T’s recent initiatives are perfectly aligned with that long term objective.

However, high debt burden remains a major concern for the company. As of Mar. 31, 2025, AT&T had $6.88 billion of cash and cash equivalents with long-term debt of $117.26 billion compared with respective tallies of $3.3 billion and $118.4 billion in the previous quarter.  At the end of the first quarter the company has a current ratio of 0.7 and a cash ratio of 0.14. It indicates the company may face challenges in meeting short term debt obligations. The company operates in a highly saturated U.S. wireless market and faces competition from other prominent players such as Verizon, Comcast and T-Mobile in across different vertical. Verizon’s acquisition of Frontier Communication will significantly boost its fiber infrastructure and pose a major challenge to AT&T’s fiber expansion strategy.

AT&T’s aiming to counter these challenges on the back of a customer-centric strategy and resilient business model. It expects to continue investing in key areas of 5G and fiber and adjust its business according to the evolving market scenario to fuel long-term growth. It has recently completed the divestiture of its remaining 70% stake in DIRECTV. It will allow AT&T to focus on its primary growth engines the 5G and wireless business. The capital influx is set to lower the debt burden and enhance liquidity.

How Do Zacks Estimates Compare for CMCSA & T?

The Zacks Consensus Estimate for AT&T’s 2025 sales indicate a growth of 1.57% year over year while EPS implies a decline of 10.18% year over year. The EPS estimate for 2025 has remain unchanged for past 60 days while estimate for 2026 has been trending upward.

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The Zacks Consensus Estimate for Comcast’s 2025 sales indicate a decline of 1.23% year over year, while EPS is projected to match the year agow quarter's figure of $4.33. The EPS estimates of has been trending southward over the past 60 days.

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Price Performance & Valuation of CMCSA & T

Over the past year, AT&T has gained 45.1%, while Comcast has declined 10.2%.

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CMCSA looks more attractive than AT&T from a valuation standpoint. Going by the price/earnings ratio, CMCSA’s shares currently trade at 7.77 forward earnings, lower than 12.58 for AT&T.

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End Note

AT&T 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.

Amid intensifying competition, both Comcast and AT&T  are focusing on expanding their fiber broadband infrastructure and expanding their customer base in the upcoming quarters. AT&T’s strong fiber footprint, strategic divestiture of its non core assets are expected to give it’s a competitive edge. Upward estimate revision shows growing investors’ confidence. Hence, with strong price performance, healthy wireless momentum AT&T is appears to be a better investment option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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