Verizon Communications Inc. (VZ), AT&T Inc. (T): Phone Giants, Attractive Investments?

I love Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC)’s foothold in the mobile market.  After all, this company has a phenomenal mobile communications network, a strong brand, an impressive distribution network and a suitable platform for data transmission.

Plus this company faces little competition in Turkey (Vodaphone and Avea are the only other two providers), has a track record of delivering solid revenue and predictable earnings growth, and offers many innovative solutions.

Next we have Telefonica S.A. (ADR) (NYSE:TEF), a company that I like for entirely different reasons.  A few years ago, this company paid a sizable dividend (which it temporarily cut to reduce its debt).  Many analysts, including myself, applauded that sound business decision.

With Telefonica S.A. (ADR) (NYSE:TEF) you get the best of both worlds: a foothold in “old Europe” (aka Spain, the UK, etc.) and a dominant presence in nearly all of Central and South America.  So this company is well-positioned to benefit from both the European recovery and the growth in infrastructure (cell phone users) in Latin America.

My Foolish take

Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) and Telefonica S.A. (ADR) (NYSE:TEF) are both well-positioned to benefit from several trends such as the migration to mobile and increased data consumption.  Furthermore, both of these companies have strong footholds in their respective countries as well as the potential to grow abroad.  At a price point of around $14 per share for each, I would consider ignoring analysts’ hold recommendations and initiating a modest position.  Then benefit from a modest recovery in the European market.

Ryan Peckyno owns shares of both Turkcell Illetism Hizmetleri and Telefonica. The Motley Fool has no position in any of the stocks mentioned.

The article Are the Phone Giants Attractive Investments? originally appeared on Fool.com.

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