Vonage (NASDAQ:VG) and Frontier Communications (OTCMKTS:FTRCQ) Head to Head Review

Vonage (NASDAQ:VG – Get Rating) and Frontier Communications (OTCMKTS:FTRCQ – Get Rating) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, advisory recommendations, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

91.4% of Vonage shares are held by institutional investors. 4.7% of Vonage shares are held by insiders. Comparatively, 1.7% of Frontier Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Vonage and Frontier Communications, as provided by MarketBeat.com.

Sell ​​Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vonage 1 11 1 0 2.00
Frontier Communications 0 0 0 0 N/A

Vonage presently has a consensus target price of $18.94, indicating a potential downside of 0.75%. Given Vonage’s higher possible upside, analysts plainly believe Vonage is more favorable than Frontier Communications.

Earnings & Valuation

This table compares Vonage and Frontier Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vonage $1.41 billion 3.47 -$24.50 million ($0.17) -112.23
Frontier Communications $6.41 billion 0.00 $4.96 billion N/A N/A

Frontier Communications has higher revenue and earnings than Vonage.


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

Net Margins Return on Equity Return on Assets
Vonage -2.87% 2.53% 1.10%
Frontier Communications 80.23% 110.77% 31.13%

About Vonage (Get Rating)

Vonage Holdings Corp. primarily operates as a cloud communications company in the United States, Canada, the United Kingdom, the European Union, and Asia. It operates in two segments, Vonage Communications Platform and Consumer. The Vonage Communications Platform segment offers programmable, embeddable, and customizable application program interfaces that enable software developers to build communications capabilities, such as messaging and voice calling within their applications; and Vonage Contact Center, a cloud contact center solution. This segment also provides Vonage Business Communications, a cloud-native proprietary technology platform that delivers integrated unified communication services; and Vonage Business Enterprise, a cloud-based platform for mid-market and enterprise customers that provides unified communication and collaboration services, including voice, data, video, mobile, and contact center services. The Consumer segment provides home telephone services through various service plans with basic features, including voicemail, call waiting, call forwarding, simulring, visual voicemail, and boomerang and extensions, as well as area code selection, virtual phone numbers, and Web-enabled voicemail . The company also offers procured high-speed broadband Internet services that allows calls over the Internet from a standard telephone through a Vonage-enabled devices, soft phone software, and mobile client applications. Vonage Holdings Corp. was incorporated in 2000 and is headquartered in Holmdel, New Jersey.

About Frontier Communications (Get Rating)

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 US Bankruptcy Court for the Southern District of New York.

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