Extreme vs Frontier Which Is More Reliable?

Extreme and frontier stocks are two categories of investments that exist on opposite ends of the risk spectrum. Extreme stocks are highly volatile, with the potential for significant gains or losses in a short period of time. These stocks are typically found in industries or companies that experience rapid fluctuations in performance. On the other hand, frontier stocks are considered to be even riskier, as they come from developing markets with less liquidity and transparency. Investors looking to diversify their portfolios should carefully consider the trade-offs between extreme and frontier stocks.

Extreme or Frontier?

When comparing Extreme 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 Extreme 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. Extreme has a dividend yield of 3.41%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Extreme 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 Extreme P/E ratio at 6.33 and Frontier's P/E ratio at -251.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Extreme P/B ratio is 1.17 while Frontier's P/B ratio is 2.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Extreme has seen a 5-year revenue growth of 0.58%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Extreme's ROE at 19.26% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1116.00 for Extreme and $6.57 for Frontier. Over the past year, Extreme's prices ranged from ¥866.00 to ¥1393.00, with a yearly change of 60.85%. 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.