Meridian vs Frontier Which Is More Favorable?

Meridian and Frontier stocks are two distinct investment options that cater to different market segments. Meridian stocks typically refer to well-established companies or industries that have a strong track record of steady growth and stability. On the other hand, Frontier stocks are associated with emerging markets or sectors that have the potential for high growth but also come with higher risk. Understanding the differences between these two types of stocks is crucial for building a diversified and well-balanced investment portfolio.

Meridian or Frontier?

When comparing Meridian 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 Meridian 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. Meridian has a dividend yield of 2.93%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Meridian reports a 5-year dividend growth of 0.00% year and a payout ratio of 49.43%. 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 Meridian P/E ratio at 16.77 and Frontier's P/E ratio at -217.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Meridian P/B ratio is 1.13 while Frontier's P/B ratio is 2.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Meridian has seen a 5-year revenue growth of 0.74%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meridian's ROE at 6.99% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.80 for Meridian and $5.78 for Frontier. Over the past year, Meridian's prices ranged from $8.26 to $17.33, with a yearly change of 109.93%. 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.