Frontline PLC (FRO) vs Kinetik Holdings Inc. (KNTK)

Frontline PLC and Kinetik Holdings Inc. are both Oil & Gas Midstream companies. Frontline PLC is the larger, with a market value of $10.0B against $8.0B — 1.2× the size. Frontline PLC trades at the lower P/E: 6.7× against 16.3×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against 15.8%. Frontline PLC has the higher net margin (49.4% vs 0.00%) and the higher return on invested capital (19.4% vs 5.82%). Both pay a dividend; Frontline PLC yields more (12.0% vs 6.57%). Across the 22 metrics below, Frontline PLC leads on 16 and Kinetik Holdings Inc. on 6.

Valuation

Metric FRO KNTK Oil & Gas Midstream median
P/E 6.72 16.33 11.68
P/S 3.32 1.98 2.39
P/B 3.17 n/m 1.68
Price to free cash flow 5.90 16.68 8.52
EV/EBITDA 7.42 12.85 9.03
EV/Sales 4.02 3.97 3.43
Earnings yield 14.87% 6.12% 7.78%
Free cash flow yield 16.94% 6.00% 7.11%

Profitability

Metric FRO KNTK Oil & Gas Midstream median
Gross margin 66.67% 41.01% 54.87%
Operating margin 54.14% 12.17% 34.73%
Net margin 49.37% 0.00% 20.12%
Free cash flow margin 56.19% 11.88% 14.43%
Return on equity 53.85% 0.00% 11.73%
Return on assets 24.94% 0.00% 4.43%
Return on invested capital 19.35% 5.82% 6.10%

Growth

Metric FRO KNTK Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 15.79% 14.88%
EPS growth (last fiscal year) (23.77%) 157.84% (7.78%)
Revenue growth, 5-year CAGR 10.05% 33.88% 10.05%
Net income growth, 5-year CAGR (1.69%) 129.65% 0.00%

Health

Metric FRO KNTK Oil & Gas Midstream median
Debt to equity 0.77 (2.93) 0.77
Current ratio 1.87 0.64 1.19
Net debt to EBITDA 3.03 6.79 3.46

Dividend

Metric FRO KNTK Oil & Gas Midstream median
Dividend yield 12.00% 6.57% 4.94%
Payout ratio 0.81 1.08 0.73

Size

Metric FRO KNTK Oil & Gas Midstream median
Market cap 9.95b 7.98b 3.56b

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