Head to Head Analysis: SoftBank Group (OTCMKTS:SFTBY) vs. Frontier Communications (OTCMKTS:FTRCQ)

SoftBank Group (OTCMKTS:SFTBY) and Frontier Communications (OTCMKTS:FTRCQ) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SoftBank Group and Frontier Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftBank Group	0	0	1	0	3.00
Frontier Communications	0	0	0	0	N/A

Profitability

This table compares SoftBank Group and Frontier Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoftBank Group	-4.14%	-2.38%	-0.61%
Frontier Communications	0.47%	0.52%	0.13%

Institutional & Insider Ownership

0.0% of SoftBank Group shares are owned by institutional investors. 1.7% of Frontier Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SoftBank Group and Frontier Communications’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftBank Group	$46.80 billion	2.33	-$1.58 billion	($0.73)	-50.73
Frontier Communications	$5.75 billion	N/A	$29.00 million	N/A	N/A

Frontier Communications has lower revenue, but higher earnings than SoftBank Group.

Summary

Frontier Communications beats SoftBank Group on 5 of the 8 factors compared between the two stocks.

About SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

About Frontier Communications

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises. In addition, it offers data and Internet services; wireless broadband services; satellite TV video services; voice services, including data-based VoIP, UCaaS, and long distance and voice messaging services; and a package of communications services. Further, the company provides a range of access services that allow other carriers to use facilities to originate and terminate their local and long-distance voice traffic. It serves approximately 3.6 million customers and 3.1 million broadband subscribers in 25 states. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was incorporated in 1935 and is based in Norwalk, Connecticut. On April 14, 2020, Frontier Communications Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.