Reviewing Frontier Communications Parent (NASDAQ:FYBR) & A10 Networks (NYSE:ATEN)

Frontier Communications Parent (NASDAQ:FYBR) and A10 Networks (NYSE:ATEN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

98.6% of A10 Networks shares are owned by institutional investors. 1.6% of Frontier Communications Parent shares are owned by insiders. Comparatively, 1.2% of A10 Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Frontier Communications Parent and A10 Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontier Communications Parent	$5.94 billion	1.54	-$322.00 million	($1.55)	-23.61
A10 Networks	$261.70 million	4.89	$50.14 million	$0.67	26.49

A10 Networks has lower revenue, but higher earnings than Frontier Communications Parent. Frontier Communications Parent is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Frontier Communications Parent and A10 Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontier Communications Parent	-6.40%	-7.88%	-1.85%
A10 Networks	18.70%	24.23%	11.29%

Analyst Ratings

This is a summary of current ratings and price targets for Frontier Communications Parent and A10 Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontier Communications Parent	1	10	1	0	2.00
A10 Networks	0	2	3	0	2.60

Frontier Communications Parent presently has a consensus target price of $36.58, indicating a potential downside of 0.05%. A10 Networks has a consensus target price of $22.00, indicating a potential upside of 23.94%. Given A10 Networks’ stronger consensus rating and higher possible upside, analysts plainly believe A10 Networks is more favorable than Frontier Communications Parent.

Risk and Volatility

Frontier Communications Parent has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, A10 Networks has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Summary

A10 Networks beats Frontier Communications Parent on 12 of the 14 factors compared between the two stocks.

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.

About A10 Networks

A10 Networks, Inc. provides networking solutions in the Americas, Japan, rest of Asia Pacific, Europe, the Middle East, and Africa. The company offers Thunder Application Delivery Controller that provides advanced server load balancing; Thunder Carrier Grade Networking, which provides standards-compliant address and protocol translation services between varying types of internet protocol addresses; Thunder Secure Sockets Layer (SSL) Insight that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses multiple critical security capabilities in one package. It also provides intelligent management and automation tool comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery. In addition, the company offers A10 Defend Threat Control, a standalone SaaS platform; A10 Defend Orchestrator provides a centralized point of control for seamless distributed denial of service (DDoS) defense management and execution; A10 Defend Detector, a Netflow, Sflow, IPFIX-based DDoS detector used to easily manage the scale and heterogenous nature of SP networks; and A10 Defend Mitigator, a precision, automated, scalable, and intelligent DDoS mitigation solution. It delivers its solutions in optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software forms. The company serves cloud providers; cloud, telecommunications, and multiple system and cable service providers; government organizations; and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. It markets its products through sales organizations; and distribution channel partners, such as distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.