Frontier vs Garmin Which Is More Lucrative?

Frontier Communications Corporation and Garmin Ltd. are two companies operating in different sectors of the market, but both offer investment opportunities for those interested in the stock market. Frontier is a telecommunications company that focuses on providing internet, phone, and television services to customers, while Garmin specializes in GPS technology for a variety of industries. Both stocks have had their ups and downs in recent years, making them intriguing options for investors looking to diversify their portfolios.

Frontier or Garmin?

When comparing Frontier and Garmin, 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 Garmin.

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 Garmin has a dividend yield of 1.38%. 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, Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%.

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 Garmin's P/E ratio at 27.28. 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 Garmin's P/B ratio is 5.52.

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 Garmin's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Garmin's ROE at 21.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.30 for Frontier and $214.46 for Garmin. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Garmin's prices fluctuated between $119.15 and $222.97, with a yearly change of 87.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.