Frontier Communications Corporation (NASDAQ: FTR) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its competitors? We will compare Frontier Communications Corporation to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Valuation & Earnings

This table compares Frontier Communications Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Frontier Communications Corporation $9.59 billion $3.74 billion -0.85
Frontier Communications Corporation Competitors $13.52 billion $4.52 billion 4.90

Frontier Communications Corporation’s competitors have higher revenue and earnings than Frontier Communications Corporation. Frontier Communications Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 19.7%. 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 1,353.6% of their earnings in the form of a dividend. Frontier Communications Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Frontier Communications Corporation and its competitors’ 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, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Frontier Communications Corporation’s competitors have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Frontier Communications Corporation and its competitors, 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 530 1517 1824 65 2.36

Frontier Communications Corporation currently has a consensus price target of $7.19, indicating a potential downside of 41.06%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.31%. Given Frontier Communications Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Frontier Communications Corporation has less favorable growth aspects than its competitors.

Summary

Frontier Communications Corporation competitors 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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