AT&T vs Frontier Which Is Superior?

AT&T and Frontier are two telecommunications companies that are frequently compared by investors due to their similar business models and market share. AT&T is a global giant in the industry, offering a wide range of services including internet, television, and mobile communications. On the other hand, Frontier specializes in providing internet and phone services primarily in rural areas. Both companies face challenges in an increasingly competitive market, but their stocks may appeal to different types of investors based on their risk tolerance and investment goals.

AT&T or Frontier?

When comparing AT&T 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 AT&T 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. AT&T has a dividend yield of 6.22%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%. 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 AT&T P/E ratio at 17.73 and Frontier's P/E ratio at -245.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AT&T P/B ratio is 1.57 while Frontier's P/B ratio is 2.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AT&T has seen a 5-year revenue growth of -0.32%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.06 for AT&T and $6.42 for Frontier. Over the past year, AT&T's prices ranged from $15.64 to $22.73, with a yearly change of 45.33%. 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.