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Better Buy: Enterprise Products Partners vs. Qualcomm

By Andrew Tonner and Joel South – Mar 23, 2014 at 10:00AM

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We've collected the most popular companies amongst Fool.com readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool's Better-Buy Tournament.

In today's match-up of The Motley Fool's Better-Buy Tournament, Enterprise Products Partners squares off against Qualcomm in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks, with the winner determined by you, the readers.

Motley Fool energy analyst Joel South thinks Enterprise Products Partners (EPD 0.58%) is the premier MLP investment in today's market. With an industry-leading low cost of capital, Enterprise Products Partners is able to safely fund growth projects without having to increase its debt leverage ratio. This gives unit holders piece of mind while they collect hefty distribution yields every quarter. In fact, with access to cheap capital, no general partner to pay management fees to, and a booming North American oil and gas industry, Enterprise Products Partners has increased its distribution for 38 consecutive quarters. 

Tech and telecom analyst Andrew Tonner makes the case for Qualcomm (QCOM 0.14%) to advance to the next round because of its amazing ties to mobile growth. Qualcomm played an instrumental role in developing some of today's most important communications technologies. This legacy has left Qualcomm with one of the most impressive patent portfolios anywhere, which it uses to generate huge royalties in mobile. However, Qualcomm's also developed a leading mobile chip business, which, when combined with its patent business, allows it to be one of the most shareholder-friendly companies in tech.

Watch these analysts square off in the following video, and then vote for a winner. Then check out the other companies in The Motley Fool's Better-Buy Bracket

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Cast your vote in the poll below the video!

Andrew Tonner and Joel South have no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners and owns shares of Qualcomm. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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