Frontier vs Extreme Which Is a Smarter Choice?

Frontier and Extreme stocks are two categories of high-risk investment options, known for their potential for substantial returns as well as high volatility. Frontier stocks represent companies operating in emerging markets or industries with significant growth potential, while Extreme stocks are often characterized by being highly speculative and volatile, appealing to investors seeking high-risk, high-reward opportunities. Both types of stocks require careful consideration and due diligence before investing, as their performance can be unpredictable and subject to market fluctuations.

Frontier or Extreme?

When comparing Frontier and Extreme, 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 Extreme.

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 Extreme has a dividend yield of 2.74%. 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, Extreme 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 -236.08 and Extreme's P/E ratio at 7.88. 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 2.58 while Extreme's P/B ratio is 1.45.

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 Extreme's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Extreme's ROE at 19.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.30 for Frontier and ¥1374.00 for Extreme. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Extreme's prices fluctuated between ¥866.00 and ¥1429.00, with a yearly change of 65.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.