MasTec vs. Dycom: Which Telecom Infrastructure Stock Has More Upside?

The telecommunications and digital infrastructure space continues to see strong momentum as demand rises for faster connectivity, data transmission and network expansion. MasTec, Inc. MTZ and Dycom Industries, Inc. DY operate within this environment. Ongoing fiber deployments, data center buildouts and increasing network complexity are driving sustained activity across the sector. Customers are investing to support broadband access, hyperscaler requirements and evolving data consumption needs, while also relying on partners that can deliver scale, execution and technical expertise across large and complex projects.Within this backdrop, MasTec stands out for its diversified infrastructure platform with exposure to telecom, power and data center-related work, while Dycom focuses on communications contracting and continues to expand into digital infrastructure and building systems. Both companies highlight strong demand trends, supported by skilled workforce capabilities and long-standing customer relationships, positioning each as a key partner in supporting long-term connectivity and network expansion needs.Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.The Case for MasTec StockThis Florida-based infrastructure construction company is benefiting from strong activity across communications, clean energy and pipeline infrastructure markets. MasTec continues to see broad-based demand as customers expand broadband networks, energy systems and digital infrastructure to support rising data usage and long-term connectivity needs. The company reported revenue growth of 16% year over year in the fourth quarter, reflecting continued momentum across its diversified platform.MasTec entered the year with improved visibility supported by strong backlog growth and expanding opportunities across segments. As of Dec. 31, 2025, the company reported backlog growth of 33% year over year and 13% sequentially, highlighting solid demand across pipeline, clean energy and communications markets. In the fourth quarter, revenues from the Communications segment increased 23% year over year, driven by strong wireless and wireline construction activity.However, margin performance remained under pressure due to ongoing investments in workforce expansion, new project ramp-ups and infrastructure required to support growth. The company highlighted that rapid organic expansion and start-up costs tied to new programs weighed on profitability despite strong revenue performance.Looking ahead, MasTec continues to see strong opportunities across fiber deployment, energy infrastructure and data center development. The company expects sustained demand from broadband expansion, renewable investments and digital infrastructure buildouts, with maturing projects and operating leverage likely to support margin improvement over time.The Case for Dycom StockDycom is benefiting from strong activity across communications and digital infrastructure markets. The company continues to benefit from strong demand across the telecommunications infrastructure market. Owing to continued customer program ramp-ups across broadband and fiber infrastructure projects, organic revenue growth in fiscal 2026 was 6.5% year over year, which is expected to be within 6.6% and 10.3% in fiscal 2027. The company entered the year with strong visibility supported by backlog growth and expanding opportunities across communications and digital infrastructure. As of fiscal 2026, the company reported a backlog of $9.54 billion, up 23% year over year, with $6.36 billion expected to be completed over the next 12 months, increasing 37% year over year. This growth is supported by continued investments in fiber-to-the-home deployments, hyperscaler infrastructure and network expansion programs.However, margins faced some pressure during the quarter due to workforce expansion, weather-related disruptions and continued investment to support growth. These factors, along with scaling costs tied to rising demand, weighed on near-term profitability despite strong revenue momentum.Looking ahead, Dycom remains well positioned to benefit from long-term demand across fiber deployment, data center buildouts and next-generation network expansion. The company expects continued strength in communications and digital infrastructure markets, with operating leverage and scale likely to support margin improvement over time.Stock Performance & ValuationAs witnessed from the chart below, in the past six months, MasTec's share price performance stands above Dycom and the Building Products - Heavy Construction industry.Image Source: Zacks Investment ResearchConsidering valuation, MasTec is currently trading at a discount compared with Dycom on a forward 12-month price-to-earnings (P/E) ratio basis.Image Source: Zacks Investment ResearchComparing EPS Estimate Trends of MTZ & DYMTZ's earnings estimates for 2026 have increased in the past 30 days to $8.61 per share. This indicates expected earnings growth of 31.5% year over year on projected revenue growth of 19.2%.MasTec's EPS TrendImage Source: Zacks Investment ResearchDY's earnings estimates for fiscal 2027 have increased in the past 30 days to $13.76 per share. This indicates expected earnings growth of 15% year over year on projected revenue growth of 27.4%.Dycom's EPS TrendImage Source: Zacks Investment ResearchWhich Telecom Infrastructure Stock Stands Out More Now?MasTec and Dycom are both benefiting from strong demand across telecommunications and digital infrastructure markets, supported by fiber expansion, data center buildouts and rising network complexity. Dycom is showing strong execution momentum, supported by solid backlog visibility and continued growth in broadband and fiber programs. MasTec, on the other hand, offers a more diversified platform across communications, clean energy and pipeline infrastructure, providing multiple growth levers and broader exposure to long-term infrastructure spending trends.MasTec’s diversified operations and expanding backlog provide stronger visibility across multiple end markets, while Dycom remains more concentrated in communications infrastructure despite solid demand trends. At the same time, MasTec continues to navigate margin pressures tied to growth investments, whereas Dycom is also facing near-term cost pressures from scaling and workforce expansion.With MasTec carrying a Zacks Rank #3 (Hold) and Dycom having a Zacks Rank #4 (Sell), the former appears to be the relatively better stock at this time, supported by its diversified growth profile and broader exposure to infrastructure opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dycom Industries, Inc. (DY): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks