Frontier vs Charter Communications Which Is a Smarter Choice?

Frontier Communications and Charter Communications are two prominent players in the telecommunications industry, offering a wide range of services to consumers. Frontier, a smaller regional provider, has faced financial challenges in recent years, leading to fluctuating stock performance. On the other hand, Charter, a larger national provider, has shown steady growth and impressive stock performance. Investors must consider factors such as market competitiveness, business strategies, and financial stability when deciding between Frontier and Charter Communications stocks.

Frontier or Charter Communications?

When comparing Frontier and Charter Communications, 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 Charter Communications.

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 Charter Communications has a dividend yield of -%. 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, Charter Communications 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 Frontier P/E ratio at -251.12 and Charter Communications's P/E ratio at 12.06. 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 Charter Communications's P/B ratio is 4.00.

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 Charter Communications's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Charter Communications's ROE at 37.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.57 for Frontier and $393.00 for Charter Communications. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Charter Communications's prices fluctuated between $236.08 and $421.16, with a yearly change of 78.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.