Garmin vs Frontier Which Outperforms?

Garmin and Frontier stocks are two popular investment options in the technology and telecommunications sectors, respectively. Garmin, a leading provider of GPS navigation and wearable technology, has seen steady growth in recent years. On the other hand, Frontier Communications, a telecommunications company, has faced challenges due to increasing competition and changing consumer trends. Investors looking to diversify their portfolios may consider both stocks for their potential growth opportunities and risks. It's important to conduct thorough research and consult with a financial advisor before making any investment decisions.

Garmin or Frontier?

When comparing Garmin and Frontier, 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 Garmin and Frontier.

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. Garmin has a dividend yield of 1.75%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%. On the other hand, Frontier 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 Garmin P/E ratio at 26.92 and Frontier's P/E ratio at -251.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Garmin P/B ratio is 5.44 while Frontier's P/B ratio is 2.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Garmin has seen a 5-year revenue growth of 0.54%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 21.10% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $211.97 for Garmin and $6.57 for Frontier. Over the past year, Garmin's prices ranged from $116.01 to $214.83, with a yearly change of 85.18%. Frontier's prices fluctuated between $2.79 and $8.33, with a yearly change of 198.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.