Phoenix vs Frontier Which Outperforms?

Phoenix vs Frontier stocks refer to two distinct categories of investment opportunities, each with its own unique characteristics and risks. Phoenix stocks typically refer to established companies with strong track records and stable performance, often considered a safer investment option. On the other hand, Frontier stocks are associated with emerging markets or industries that may offer higher growth potential but come with increased volatility and uncertainty. Understanding the differences between these two types of stocks is crucial for investors looking to diversify their portfolios and manage risk effectively.

Phoenix or Frontier?

When comparing Phoenix 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 Phoenix 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. Phoenix has a dividend yield of 10.29%, while Frontier has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Phoenix reports a 5-year dividend growth of 2.86% year and a payout ratio of -106.51%. 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 Phoenix P/E ratio at -9.93 and Frontier's P/E ratio at -236.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Phoenix P/B ratio is 2.25 while Frontier's P/B ratio is 2.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Phoenix has seen a 5-year revenue growth of 3.42%, while Frontier's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Phoenix's ROE at -21.76% and Frontier's ROE at -1.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £516.50 for Phoenix and $6.30 for Frontier. Over the past year, Phoenix's prices ranged from £475.00 to £581.22, with a yearly change of 22.36%. 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.