Enterprise vs Frontline Which Is a Better Investment?

Enterprise stocks and frontline stocks are two distinct categories within the stock market that cater to different types of investors. Enterprise stocks typically refer to larger, well-established companies with stable revenues and consistent dividend payouts. On the other hand, frontline stocks are smaller, high-growth companies with greater potential for volatility and higher returns. Understanding the differences between these two types of stocks is crucial for investors looking to diversify their portfolios and maximize their investment potential.

Enterprise or Frontline?

When comparing Enterprise and Frontline, 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 Enterprise and Frontline.

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. Enterprise has a dividend yield of -%, while Frontline has a dividend yield of 13.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enterprise reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Frontline reports a 5-year dividend growth of 0.00% year and a payout ratio of 78.26%.

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 Enterprise P/E ratio at 13.50 and Frontline's P/E ratio at 7.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enterprise P/B ratio is 2.05 while Frontline's P/B ratio is 1.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enterprise has seen a 5-year revenue growth of 0.81%, while Frontline's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enterprise's ROE at 17.41% and Frontline's ROE at 25.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.32 for Enterprise and $18.80 for Frontline. Over the past year, Enterprise's prices ranged from $0.49 to $2.10, with a yearly change of 328.57%. Frontline's prices fluctuated between $18.34 and $29.39, with a yearly change of 60.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.