Frontline vs Enterprise Which Performs Better?

Frontline stocks and enterprise stocks are two categories of investments that cater to different risk appetites and investment goals. Frontline stocks refer to companies that are leaders in their industries with strong competitive advantages and growth potential. On the other hand, enterprise stocks are typically more established companies with stable earnings and dividend payments. Understanding the differences between these two types of stocks can help investors make informed decisions when building their investment portfolios.

Frontline or Enterprise?

When comparing Frontline and Enterprise, 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 Frontline and Enterprise.

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. Frontline has a dividend yield of 13.72%, while Enterprise has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Frontline reports a 5-year dividend growth of 0.00% year and a payout ratio of 77.70%. On the other hand, Enterprise 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 Frontline P/E ratio at 5.78 and Enterprise's P/E ratio at 18.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Frontline P/B ratio is 1.35 while Enterprise's P/B ratio is 2.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Frontline has seen a 5-year revenue growth of 0.85%, while Enterprise's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontline's ROE at 23.21% and Enterprise's ROE at 12.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.84 for Frontline and $1.27 for Enterprise. Over the past year, Frontline's prices ranged from $13.71 to $29.39, with a yearly change of 114.37%. Enterprise's prices fluctuated between $0.55 and $2.10, with a yearly change of 281.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.