Frontier vs Apple Which Should You Buy?

Frontier Communications Corporation and Apple Inc. are two prominent companies in the technology and communications sectors, but with vastly different business models and market positions. While Frontier focuses on providing telecommunications services to rural areas, Apple is a global leader in the consumer electronics industry. Investors looking to diversify their portfolios may find Frontier's dividend-yielding stock appealing, while those seeking growth and innovation may lean towards Apple's stock. Understanding the strengths and weaknesses of each company is essential for making informed investment decisions.

Frontier or Apple?

When comparing Frontier and Apple, 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 Frontier and Apple.

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. Frontier has a dividend yield of -%, while Apple has a dividend yield of 0.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Frontier reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

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 Frontier P/E ratio at -251.12 and Apple's P/E ratio at 36.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Frontier P/B ratio is 2.74 while Apple's P/B ratio is 59.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Frontier has seen a 5-year revenue growth of 0.62%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.57 for Frontier and $221.50 for Apple. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.