Coca-Cola vs Frontier Which Is More Favorable?

Coca-Cola and Frontier stocks are two drastically different investment opportunities. Coca-Cola, a global beverage giant, has a long history of steady performance and consistent dividends. On the other hand, Frontier stocks represent small, lesser-known companies that operate on the forefront of innovation and growth. While Coca-Cola offers stability and reliability, Frontier stocks offer potential high returns and excitement. Investors must carefully consider their risk tolerance and investment goals when deciding between these two options.

Coca-Cola or Frontier?

When comparing Coca-Cola 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 Coca-Cola 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. Coca-Cola has a dividend yield of 3.8%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%. 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 Coca-Cola P/E ratio at 26.17 and Frontier's P/E ratio at -249.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coca-Cola P/B ratio is 10.27 while Frontier's P/B ratio is 2.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coca-Cola has seen a 5-year revenue growth of 0.31%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.12 for Coca-Cola and $6.55 for Frontier. Over the past year, Coca-Cola's prices ranged from $56.70 to $73.53, with a yearly change of 29.68%. 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.