Head to Head Analysis: Frontier Communications Corp (FTR) & Its Competitors
Frontier Communications Corp (NASDAQ: FTR) is one of 46 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Frontier Communications Corp to related businesses based on the strength of its dividends, profitability, risk, earnings, institutional ownership, valuation and analyst recommendations.
This table compares Frontier Communications Corp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Frontier Communications Corp||-28.73%||-72.68%||-9.49%|
|Frontier Communications Corp Competitors||-0.10%||-2.44%||1.09%|
This is a breakdown of recent ratings and target prices for Frontier Communications Corp and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Frontier Communications Corp||2||9||2||0||2.00|
|Frontier Communications Corp Competitors||615||1684||1912||74||2.34|
Frontier Communications Corp currently has a consensus price target of $7.19, suggesting a potential downside of 42.93%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 43.00%. Given Frontier Communications Corp’s peers stronger consensus rating and higher possible upside, analysts clearly believe Frontier Communications Corp has less favorable growth aspects than its peers.
Volatility and Risk
Frontier Communications Corp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Frontier Communications Corp’s peers have a beta of 1.05, indicating that their average share price is 5% more volatile than the S&P 500.
Frontier Communications Corp pays an annual dividend of $2.40 per share and has a dividend yield of 19.0%. Frontier Communications Corp pays out -16.6% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.8% and pay out 796.8% of their earnings in the form of a dividend. Frontier Communications Corp is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
56.0% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.9% of Frontier Communications Corp shares are held by company insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Frontier Communications Corp and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Frontier Communications Corp||$9.59 billion||$3.74 billion||-0.87|
|Frontier Communications Corp Competitors||$13.12 billion||$4.38 billion||3.56|
Frontier Communications Corp’s peers have higher revenue and earnings than Frontier Communications Corp. Frontier Communications Corp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Frontier Communications Corp peers beat Frontier Communications Corp on 12 of the 14 factors compared.
Frontier Communications Corp Company Profile
Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE). The Company offers a range of broadband services. The principal residential service it provides is broadband Internet service. Its commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching (MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. It also offers wireless broadband services (using unlicensed spectrum) in various markets utilizing networks that it owns or operates. In addition, the Company offers its Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance.
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