MBA 515 AT&T vs Verizon Company Comparison – Group Project

MBA 515 AT&T vs Verizon Company Comparison – Group Project.Executive Summary The purpose of this report is to analyze two competitive companies within the same industry (AT&T and Verizon) and decide which entity is the superior investment option for an equity investor based on certain factors. After in depth analysis the company’s background, finances, potential growth, and risk, we’ve concluded that Verizon Communications has a higher potential for growth and therefore a better long term investment option for an equity investor. Company Choices We chose these two companies because we wanted to have a comparison of companies that would reflect today’s dependence on technology. Wireless communication is a necessity for staying connected to the day-to-day happenings. When we thought of companies that are the best of their respective industries we had to consider those that have the greatest consumer bases with the highest and most advanced technologies. After discussing a few different ideas we settled on the two leading companies in the wireless communication industry, AT&T and Verizon Communications. These companies have many of the same attributes on the surface but they differ in the details. According to the North American Industry Classification System (NAICS) these companies are characterized by the same codes. “Providing wired broadband Internet services via own operated telecommunications infrastructure--are classified in Industry , Wired Telecommunications Carriers; Providing wired VoIP services via own operated telecommunications infrastructure--are classified in Industry , Wired Telecommunications Carriers; Providing expert advice in the field of information technology or in integrating communication and computer systems--are classified in Industry 54151, Computer Systems Design and Related Services; and Providing satellite telecommunications services--are classified 2 in Industry , Satellite Telecommunications.” (2012 NAICS Definition) From here these companies start their differences. They remain competitors through much of their diverse and far reaching technologies. We chose these companies because they have an array of opportunities and they are well known.