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 $10.0B against $6.3B — 1.6× the size. Frontline PLC trades at the lower P/E: 6.7× against 10.5×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against −0.60%. Frontline PLC has the higher net margin (49.4% vs 23.5%) and the higher return on invested capital (19.4% vs 15.7%). Both pay a dividend; Frontline PLC yields more (12.0% vs 10.3%). Across the 23 metrics below, Frontline PLC leads on 13 and Hess Midstream Partners LP on 10.

Valuation

Metric FRO HESM Oil & Gas Midstream median
P/E 6.72 10.48 11.68
P/S 3.32 2.43 2.39
P/B 3.17 9.65 1.68
Price to free cash flow 5.90 4.33 8.52
EV/EBITDA 7.42 6.05 9.03
EV/Sales 4.02 4.68 3.43
Earnings yield 14.87% 9.54% 7.78%
Free cash flow yield 16.94% 23.09% 7.11%

Profitability

Metric FRO HESM Oil & Gas Midstream median
Gross margin 66.67% 100.00% 54.87%
Operating margin 54.14% 62.70% 34.73%
Net margin 49.37% 23.49% 20.12%
Free cash flow margin 56.19% 56.20% 14.43%
Return on equity 53.85% 90.65% 11.73%
Return on assets 24.94% 8.72% 4.43%
Return on invested capital 19.35% 15.70% 6.10%

Growth

Metric FRO HESM Oil & Gas Midstream median
Revenue growth (TTM) 63.48% (0.60%) 14.88%
EPS growth (last fiscal year) (23.77%) 14.86% (7.78%)
Revenue growth, 5-year CAGR 10.05% 8.23% 10.05%
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 8.90 0.77
Current ratio 1.87 0.25 1.19
Net debt to EBITDA 3.03 3.05 3.46

Dividend

Metric FRO HESM Oil & Gas Midstream median
Dividend yield 12.00% 10.30% 4.94%
Payout ratio 0.81 1.08 0.73

Size

Metric FRO HESM Oil & Gas Midstream median
Market cap 9.95b 6.25b 3.56b

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