Frontier vs Vector Which Is a Smarter Choice?

Frontier and Vector stocks are two popular investment options for individuals looking to diversify their portfolio and potentially generate strong returns. While both types of stocks belong to the broader asset class of equities, they have distinct characteristics that set them apart. Frontier stocks typically refer to investments in emerging markets with high growth potential but also higher levels of risk. Vector stocks, on the other hand, are typically associated with companies that exhibit strong growth prospects and are often involved in cutting-edge technologies or industries. Investors must carefully consider their risk tolerance, investment goals, and time horizon when deciding between frontier and vector stocks.

Frontier or Vector?

When comparing Frontier and Vector, 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 Vector.

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 Vector has a dividend yield of 4.0%. 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, Vector reports a 5-year dividend growth of -18.53% year and a payout ratio of 63.35%.

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 -257.78 and Vector's P/E ratio at 11.54. 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 2.82 while Vector's P/B ratio is -3.23.

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 Vector's is -0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Vector's ROE at -26.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.17 for Frontier and $14.99 for Vector. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Vector's prices fluctuated between $9.28 and $15.53, with a yearly change of 67.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.