Frontier vs Verizon Which Is More Favorable?

Frontier Communications Corporation and Verizon Communications Inc. are two major players in the telecommunications industry. Frontier, a provider of phone, internet, and television services, has struggled in recent years with declining revenue and high debt levels. Meanwhile, Verizon, a leading provider of wireless services, has maintained a strong position in the market with consistent revenue growth and a solid balance sheet. Investors looking to invest in the telecommunications sector must carefully consider the performance and outlook of both Frontier and Verizon stocks.

Frontier or Verizon?

When comparing Frontier and Verizon, 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 Verizon.

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 Verizon has a dividend yield of 6.32%. 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, Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%.

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 Verizon's P/E ratio at 18.21. 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 Verizon's P/B ratio is 1.85.

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 Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontier's ROE at -1.17% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.30 for Frontier and $41.81 for Verizon. Over the past year, Frontier's prices ranged from $2.79 to $8.33, with a yearly change of 198.57%. Verizon's prices fluctuated between $37.14 and $45.36, with a yearly change of 22.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.