ARC Group Worldwide (ARCW) vs. Frontier Communications Corporation (FTR) Critical Review
ARC Group Worldwide (NASDAQ: ARCW) and Frontier Communications Corporation (NASDAQ:FTR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares ARC Group Worldwide and Frontier Communications Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ARC Group Worldwide||$111.99 million||0.41||$9.57 million||($0.04)||-62.50|
|Frontier Communications Corporation||$9.59 billion||0.11||$3.74 billion||($14.42)||-0.94|
Frontier Communications Corporation has higher revenue and earnings than ARC Group Worldwide. ARC Group Worldwide is trading at a lower price-to-earnings ratio than Frontier Communications Corporation, indicating that it is currently the more affordable of the two stocks.
Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 17.7%. ARC Group Worldwide does not pay a dividend. Frontier Communications Corporation pays out -16.6% of its earnings in the form of a dividend.
Volatility & Risk
ARC Group Worldwide has a beta of 3.42, indicating that its share price is 242% more volatile than the S&P 500. Comparatively, Frontier Communications Corporation has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
This table compares ARC Group Worldwide and Frontier Communications Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARC Group Worldwide||-0.70%||-7.31%||-2.91%|
|Frontier Communications Corporation||-9.35%||-1.28%||-0.19%|
Insider & Institutional Ownership
17.2% of ARC Group Worldwide shares are held by institutional investors. 3.2% of ARC Group Worldwide shares are held by company insiders. Comparatively, 0.9% of Frontier Communications Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings for ARC Group Worldwide and Frontier Communications Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARC Group Worldwide||0||1||1||0||2.50|
|Frontier Communications Corporation||2||9||2||0||2.00|
ARC Group Worldwide presently has a consensus price target of $5.75, indicating a potential upside of 130.00%. Frontier Communications Corporation has a consensus price target of $7.33, indicating a potential downside of 45.88%. Given ARC Group Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe ARC Group Worldwide is more favorable than Frontier Communications Corporation.
ARC Group Worldwide beats Frontier Communications Corporation on 8 of the 15 factors compared between the two stocks.
ARC Group Worldwide Company Profile
ARC Group Worldwide, Inc. is a manufacturing company. The Company has four segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling. The Flange and Fittings Group consists of General Flange and Forge. The Wireless Group focuses on wireless broadband technology related to propagation and optimization. The Wireless Group designs and develops hardware, including antennas, radios and related accessories.
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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