Altria vs Frontier Which Is a Better Investment?

Altria Group and Frontier Communications are two prominent companies operating in very different industries. Altria is a major player in the tobacco and alcohol sectors, while Frontier is a telecommunications company. Both companies have experienced their fair share of challenges in recent years, with changing consumer trends and regulatory issues impacting their performance. Investors looking to diversify their portfolios may consider comparing these two stocks to determine which one offers the most potential for growth and stability in the long term.

Altria or Frontier?

When comparing Altria and Frontier, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Altria and Frontier.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Altria has a dividend yield of 7.24%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Altria reports a 5-year dividend growth of 5.06% year and a payout ratio of 66.57%. On the other hand, Frontier reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Altria P/E ratio at 9.06 and Frontier's P/E ratio at -257.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Altria P/B ratio is -26.86 while Frontier's P/B ratio is 2.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Altria has seen a 5-year revenue growth of 0.11%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altria's ROE at -271.77% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.62 for Altria and $6.17 for Frontier. Over the past year, Altria's prices ranged from $39.25 to $58.04, with a yearly change of 47.87%. Frontier's prices fluctuated between $2.79 and $8.33, with a yearly change of 198.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.