Frontier Communications Corporation (NASDAQ: FTR) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Frontier Communications Corporation to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.
Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 19.2%. Frontier Communications Corporation 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 4.9% and pay out 1,357.5% of their earnings in the form of a dividend. Frontier Communications Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Frontier Communications Corporation and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Frontier Communications Corporation||$9.59 billion||$3.74 billion||-0.87|
|Frontier Communications Corporation Competitors||$13.52 billion||$4.52 billion||4.92|
Frontier Communications Corporation’s peers have higher revenue and earnings than Frontier Communications Corporation. Frontier Communications Corporation 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.
Insider & Institutional Ownership
58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.9% of Frontier Communications Corporation shares are held by company insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Frontier Communications Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Frontier Communications Corporation||-9.35%||-1.28%||-0.19%|
|Frontier Communications Corporation Competitors||0.59%||-0.73%||1.36%|
Volatility & Risk
Frontier Communications Corporation has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Frontier Communications Corporation’s peers have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Frontier Communications Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Frontier Communications Corporation||2||9||2||0||2.00|
|Frontier Communications Corporation Competitors||531||1522||1824||65||2.36|
Frontier Communications Corporation currently has a consensus target price of $8.49, indicating a potential downside of 32.23%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.46%. Given Frontier Communications Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Frontier Communications Corporation has less favorable growth aspects than its peers.
Frontier Communications Corporation peers beat Frontier Communications Corporation on 12 of the 14 factors compared.
About Frontier Communications Corporation
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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