Frontier Communications Corporation (FTR) & The Competition Financial Analysis
Frontier Communications Corporation (NASDAQ: FTR) is one of 45 publicly-traded 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 companies based on the strength of its institutional ownership, profitability, risk, analyst recommendations, dividends, valuation and earnings.
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||0.72%||-0.71%||1.42%|
Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 20.2%. 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.
This is a breakdown of current ratings and price targets for Frontier Communications Corporation and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Frontier Communications Corporation||2||9||2||0||2.00|
|Frontier Communications Corporation Competitors||532||1529||1824||65||2.36|
Frontier Communications Corporation presently has a consensus price target of $8.49, suggesting a potential downside of 28.59%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 46.42%. 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.
Institutional & Insider 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 insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
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.
Valuation & Earnings
This table compares Frontier Communications Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Frontier Communications Corporation||$9.59 billion||$3.74 billion||-0.82|
|Frontier Communications Corporation Competitors||$13.52 billion||$4.52 billion||5.16|
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.
Frontier Communications Corporation peers beat Frontier Communications Corporation on 12 of the 14 factors compared.
Frontier Communications Corporation 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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