Frontline vs Global Which Outperforms?

Frontline stocks represent companies directly impacted by global events, such as economic conditions or geopolitical tensions. These stocks tend to be more volatile and sensitive to changes in the global market. On the other hand, global stocks are diversified across various industries and geographies, providing investors with a more stable and secure investment option. While frontline stocks offer the potential for higher returns, global stocks offer a more balanced and diversified portfolio. Understanding the differences and benefits of each can help investors make informed investment decisions.

Frontline or Global?

When comparing Frontline and Global, 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 Global.

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 13.39%, while Global has a dividend yield of 4.64%. 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 78.26%. On the other hand, Global 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 7.07 and Global's P/E ratio at 6.52. 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 1.73 while Global's P/B ratio is 2.22.

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 0.84%, while Global's is -0.64%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontline's ROE at 25.55% and Global's ROE at 40.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.80 for Frontline and ¥620.00 for Global. Over the past year, Frontline's prices ranged from $18.34 to $29.39, with a yearly change of 60.25%. Global's prices fluctuated between ¥361.00 and ¥717.00, with a yearly change of 98.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.