BCE (NYSE:BCE) vs. Frontier Communications Parent (NASDAQ:FYBR) Critical Analysis

BCE (NYSE:BCE) and Frontier Communications Parent (NASDAQ:FYBR) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Valuation and Earnings

This table compares BCE and Frontier Communications Parent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BCE	$17.82 billion	1.13	$1.68 billion	$0.12	184.49
Frontier Communications Parent	$5.75 billion	1.55	$29.00 million	($0.75)	-47.72

BCE has higher revenue and earnings than Frontier Communications Parent. Frontier Communications Parent is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BCE and Frontier Communications Parent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BCE	0.99%	17.89%	3.88%
Frontier Communications Parent	-3.19%	-3.61%	-0.91%

Insider & Institutional Ownership

41.5% of BCE shares are owned by institutional investors. 0.2% of BCE shares are owned by insiders. Comparatively, 1.4% of Frontier Communications Parent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for BCE and Frontier Communications Parent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BCE	4	6	1	1	1.92
Frontier Communications Parent	1	9	2	0	2.08

BCE currently has a consensus price target of $45.00, indicating a potential upside of 103.26%. Frontier Communications Parent has a consensus price target of $35.31, indicating a potential downside of 1.33%. Given BCE’s higher possible upside, research analysts clearly believe BCE is more favorable than Frontier Communications Parent.

Risk & Volatility

BCE has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Frontier Communications Parent has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Summary

BCE beats Frontier Communications Parent on 10 of the 15 factors compared between the two stocks.

About BCE

BCE Inc., a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services from or to resellers and other carriers; and operates consumer electronics retail stores. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

About Frontier Communications Parent

Frontier Communications Parent, Inc., together with its subsidiaries, provides communication and technology services in the United States. It offers broadband, video, voice, and other value-added services. The company also provides data and Internet, including broadband networking services; data-based voice over internet protocol, unified communications, long-distance, and voice messaging services; video services under the Frontier TV brand; access services; hardware and network solutions; and packages of services. It serves large enterprise customers, small and medium businesses, and wholesale customers. The company was formerly known as Frontier Communications Corporation and changed its name to Frontier Communications Parent, Inc. in April 2021. Frontier Communications Parent, Inc. was incorporated in 1935 and is headquartered in Dallas, Texas.