Personal vs Frontier Which Is a Smarter Choice?

Personal vs Frontier Stocks: Both personal and frontier stocks play a significant role in investment portfolios, but they target distinct market segments. Personal stocks are well-established companies with proven track records of success, providing stable returns and lower risk. On the other hand, frontier stocks are high-risk investments in emerging markets or industries, offering the potential for higher returns but also greater volatility. Understanding the differences between personal and frontier stocks is crucial for investors seeking to effectively diversify their portfolios and maximize returns.

Personal or Frontier?

When comparing Personal 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 Personal 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. Personal has a dividend yield of 6.14%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Personal reports a 5-year dividend growth of -13.48% year and a payout ratio of 76.28%. 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 Personal P/E ratio at 13.10 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. Personal P/B ratio is 1.96 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, Personal has seen a 5-year revenue growth of -0.12%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Personal's ROE at 14.98% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £192.00 for Personal and $6.57 for Frontier. Over the past year, Personal's prices ranged from £145.02 to £210.00, with a yearly change of 44.81%. 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.