Recently the issue of voltage stability has become a major challenge for the safe operation of the power grid. The new generation synchronous condenser and STATCOM are receiving more and more attention due to their excellent voltage support capabilities. This paper first briefly introduces the basic principles and characteristics of the new generation synchronous condenser and STATCOM. Then, these two types of reactive power compensation equipment are compared technically from three aspects:coping with system voltage sag, voltage surge, and impact on short-circuit current. Based on the comparison results, the reactive power compensation equipment choice suggestion in different application scenarios are given from a technical perspective. Finally, the paper compares the economics of the new generation synchronous condenser and the chained STATCOM using the isochronic method, and gives suggestions for the selection of reactive power compensation equipment in different application scenarios from the perspective of economics.