Frontline (FRO) versus Its Rivals Head-To-Head Contrast

Frontline (NYSE:FRO) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare Frontline to related businesses based on the strength of its profitability, analyst recommendations, risk, institutional ownership, dividends, earnings and valuation.

Insider and Institutional Ownership

22.7% of Frontline shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies 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.

Earnings and Valuation

This table compares Frontline and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Frontline	$1.97 billion	$379.08 million	7.86
Frontline Competitors	$10.77 billion	$5.51 billion	-0.31

Frontline’s peers have higher revenue and earnings than Frontline. Frontline is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Frontline pays an annual dividend of $10.44 per share and has a dividend yield of 19.9%. Frontline pays out 156.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.7% and pay out -121.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Frontline and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontline	2	5	4	0	2.18
Frontline Competitors	5966	26950	40779	2408	2.52

Frontline currently has a consensus price target of $48.12, indicating a potential downside of 8.26%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 22.65%. Given Frontline’s peers stronger consensus rating and higher possible upside, analysts clearly believe Frontline has less favorable growth aspects than its peers.

Profitability

This table compares Frontline and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontline	49.47%	44.24%	20.89%
Frontline Competitors	-470.89%	19.08%	6.33%

Risk & Volatility

Frontline has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Frontline’s peers have a beta of -3.69, suggesting that their average stock price is 469% less volatile than the S&P 500.

Summary

Frontline peers beat Frontline on 8 of the 15 factors compared.

About Frontline

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.