National Grid vs Frontier

National Grid and Frontier Communications are two prominent companies in the utilities and telecommunications industries, respectively. Both companies have faced their fair share of challenges and opportunities in recent years. National Grid consistently provides a stable return for investors, thanks to its strong presence in the energy sector. On the other hand, Frontier Communications has struggled with debt and declining revenue. Understanding the differences between these two stocks can help investors make informed decisions about where to put their money.

National Grid or Frontier?

When comparing National Grid 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 National Grid 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. National Grid has a dividend yield of 4.2%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. National Grid reports a 5-year dividend growth of 2.51% year and a payout ratio of 75.02%. 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 National Grid P/E ratio at 84.17 and Frontier's P/E ratio at -21.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. National Grid P/B ratio is 6.45 while Frontier's P/B ratio is 2.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, National Grid has seen a 5-year revenue growth of -0.73%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with National Grid's ROE at 7.72% and Frontier's ROE at -12.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.10 for National Grid and $5.99 for Frontier. Over the past year, National Grid's prices ranged from $55.13 to $73.40, with a yearly change of 33.14%. 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.