Frontier vs Meridian Which Is a Smarter Choice?

Frontier and Meridian stocks are two companies that operate in different sectors of the economy and have distinct investment opportunities. Frontier stocks typically represent companies operating on the edge of innovation or in emerging markets, offering high-risk, high-reward potential. On the other hand, Meridian stocks are usually more established companies with a history of steady growth and stable returns. Investors must carefully evaluate their risk tolerance and investment goals when choosing between Frontier and Meridian stocks.

Frontier or Meridian?

When comparing Frontier and Meridian, 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 Meridian.

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 Meridian has a dividend yield of 2.71%. 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, Meridian reports a 5-year dividend growth of 0.00% year and a payout ratio of 49.43%.

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 Meridian's P/E ratio at 13.60. 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 Meridian's P/B ratio is 0.92.

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 Meridian's is 2.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Meridian's ROE at 6.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.57 for Frontier and $13.80 for Meridian. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Meridian's prices fluctuated between $8.26 and $14.45, with a yearly change of 75.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.