Frontier vs US Foods Which Is More Profitable?

Frontier Communications Corporation and US Foods Holding Corp are two companies operating in different sectors of the market - Frontier in the telecommunications industry and US Foods in the foodservice industry. Frontier has faced challenges in recent years due to decreased demand for landline services, while US Foods has experienced growth as a leading distributor to restaurants and food establishments. Both stocks have shown volatility and could offer potential opportunities for investors seeking exposure to different sectors of the market.

Frontier or US Foods?

When comparing Frontier and US Foods, 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 US Foods.

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 US Foods 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, US Foods 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 -242.44 and US Foods's P/E ratio at 28.90. 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 2.65 while US Foods's P/B ratio is 3.61.

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 US Foods's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and US Foods's ROE at 11.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.48 for Frontier and $68.87 for US Foods. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. US Foods's prices fluctuated between $43.24 and $72.84, with a yearly change of 68.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.