Frontline PLC (FRO) vs Hess Midstream Partners LP (HESM)

Frontline PLC and Hess Midstream Partners LP are both Oil & Gas Midstream companies. Frontline PLC is the larger, with a market value of $10.5B against $7.9B — 1.3× the size. Frontline PLC trades at the lower P/E: 7.1× against 13.2×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against 2.78%. Frontline PLC has the higher net margin (49.4% vs 23.2%) and the higher return on invested capital (19.4% vs 15.4%). Both pay a dividend; Frontline PLC yields more (10.4% vs 8.10%). Across the 23 metrics below, Frontline PLC leads on 14 and Hess Midstream Partners LP on 9.

Valuation

Metric FRO HESM Oil & Gas Midstream median
P/E 7.14 13.19 13.19
P/S 3.52 3.04 2.60
P/B 3.36 12.66 2.08
Price to free cash flow 6.27 5.86 10.14
EV/EBITDA 7.80 6.94 8.11
EV/Sales 4.22 5.32 3.89
Earnings yield 14.01% 7.58% 6.83%
Free cash flow yield 15.96% 17.06% 6.94%

Profitability

Metric FRO HESM Oil & Gas Midstream median
Gross margin 66.67% 100.00% 58.81%
Operating margin 54.14% 62.06% 32.14%
Net margin 49.37% 23.23% 21.16%
Free cash flow margin 56.19% 51.90% 10.15%
Return on equity 53.85% 83.74% 11.30%
Return on assets 24.94% 8.64% 5.00%
Return on invested capital 19.35% 15.41% 6.13%

Growth

Metric FRO HESM Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 2.78% 15.44%
EPS growth (last fiscal year) (23.77%) 14.86% —
Revenue growth, 5-year CAGR 10.05% 8.23% 8.96%
Net income growth, 5-year CAGR (1.69%) 71.19% 0.00%

Health

Metric FRO HESM Oil & Gas Midstream median
Debt to equity 0.77 9.48 0.78
Current ratio 1.87 0.77 1.19
Net debt to EBITDA 3.03 3.05 3.42

Dividend

Metric FRO HESM Oil & Gas Midstream median
Dividend yield 10.43% 8.10% 7.29%
Payout ratio 0.47 — 0.64

Size

Metric FRO HESM Oil & Gas Midstream median
Market cap 10.54b 7.93b 3.61b

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