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 $11.7B against $8.7B — 1.3× the size. Frontline PLC trades at the lower P/E: 7.9× against 19.8×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against 14.2%. Frontline PLC has the higher net margin (49.4% vs 10.4%) and the higher return on invested capital (19.4% vs 4.47%). Both pay a dividend; Frontline PLC yields more (10.3% vs 5.80%). 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 7.87 19.82 12.77
P/S 3.88 2.20 2.36
P/B 3.71 n/m 2.09
Price to free cash flow 6.91 33.68 9.71
EV/EBITDA 8.47 13.19 8.30
EV/Sales 4.58 4.30 3.88
Earnings yield 12.71% 5.05% 7.15%
Free cash flow yield 14.47% 2.97% 6.86%

Profitability

Metric FRO KNTK Oil & Gas Midstream median
Gross margin 66.67% 40.92% 56.58%
Operating margin 54.14% 10.52% 34.18%
Net margin 49.37% 10.41% 22.50%
Free cash flow margin 56.19% 6.54% 13.70%
Return on equity 53.85% (14.28%) 14.65%
Return on assets 24.94% 2.74% 5.00%
Return on invested capital 19.35% 4.47% 6.13%

Growth

Metric FRO KNTK Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 14.15% 15.60%
EPS growth (last fiscal year) (23.77%) 157.84% (7.86%)
Revenue growth, 5-year CAGR 10.05% 33.88% 9.59%
Net income growth, 5-year CAGR (1.69%) 126.35% 0.00%

Health

Metric FRO KNTK Oil & Gas Midstream median
Debt to equity 0.77 (3.34) 0.78
Current ratio 1.87 0.68 1.19
Net debt to EBITDA 3.03 6.79 3.42

Dividend

Metric FRO KNTK Oil & Gas Midstream median
Dividend yield 10.25% 5.80% 4.54%
Payout ratio 0.81 1.16 0.76

Size

Metric FRO KNTK Oil & Gas Midstream median
Market cap 11.70b 8.68b 3.73b

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