BASE vs Frontier Which Is More Favorable?

When it comes to investing in stocks, two popular strategies that are often compared are BASE and Frontier stocks. BASE stocks refer to large, established companies with stable earnings and a proven track record of success. On the other hand, Frontier stocks are a riskier but potentially more lucrative option, as they are typically smaller, emerging companies with high growth potential. Understanding the differences between these two types of stocks is crucial for investors looking to diversify their portfolios and achieve their financial goals.

BASE or Frontier?

When comparing BASE 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 BASE 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. BASE has a dividend yield of 3.38%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BASE reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 BASE P/E ratio at 15.89 and Frontier's P/E ratio at -236.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BASE P/B ratio is 4.37 while Frontier's P/B ratio is 2.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BASE has seen a 5-year revenue growth of 1.16%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BASE's ROE at 29.58% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3010.00 for BASE and $6.30 for Frontier. Over the past year, BASE's prices ranged from ¥2191.00 to ¥3750.00, with a yearly change of 71.15%. 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.