Frontier vs National Grid Which Is More Reliable?

Frontier Communications and National Grid are two companies operating in different sectors but both contributing to the essential services sector. Frontier Communication is focused on providing telecommunication services, while National Grid is a leading utility company providing electricity and gas services. Both companies have seen fluctuations in their stock prices in recent years due to market dynamics and industry challenges. Investors looking to diversify their portfolio may consider comparing the performance of Frontier vs National Grid stocks to make informed investment decisions.

Frontier or National Grid?

When comparing Frontier and National Grid, 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 National Grid.

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 National Grid has a dividend yield of 9.33%. 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, National Grid reports a 5-year dividend growth of 2.51% year and a payout ratio of 75.02%.

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 National Grid's P/E ratio at 77.35. 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 National Grid's P/B ratio is 5.93.

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 National Grid's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and National Grid's ROE at 7.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.30 for Frontier and $59.58 for National Grid. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. National Grid's prices fluctuated between $55.13 and $73.40, with a yearly change of 33.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.