Frontier vs AT&T Which Is More Attractive?

Frontier Communications and AT&T are two major players in the telecommunications industry, but their stocks have taken different trajectories in recent years. Frontier has faced financial challenges and has seen its stock price decline significantly, while AT&T has continued to be a dominant force in the market with a more stable stock performance. Investors are closely watching the competition between these two companies to see how they navigate the changing landscape of the telecommunications industry.

Frontier or AT&T?

When comparing Frontier and AT&T, 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 AT&T.

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 AT&T has a dividend yield of 4.75%. 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, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%.

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 -221.49 and AT&T's P/E ratio at 18.59. 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 2.42 while AT&T's P/B ratio is 1.64.

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 AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and AT&T's ROE at 8.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.71 for Frontier and $23.34 for AT&T. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. AT&T's prices fluctuated between $15.94 and $24.03, with a yearly change of 50.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.