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 $10.5B against $8.5B — 1.2× the size. Frontline PLC trades at the lower P/E: 7.1× against 18.4×. 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 (10.4% vs 9.21%). 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 7.14 18.35 13.19
P/S 3.52 2.04 2.60
P/B 3.36 n/m 2.08
Price to free cash flow 6.27 31.19 10.14
EV/EBITDA 7.80 12.69 8.11
EV/Sales 4.22 4.14 3.89
Earnings yield 14.01% 5.45% 6.83%
Free cash flow yield 15.96% 3.21% 6.94%

Profitability

Metric FRO KNTK Oil & Gas Midstream median
Gross margin 66.67% 40.92% 58.81%
Operating margin 54.14% 10.52% 32.14%
Net margin 49.37% 10.41% 21.16%
Free cash flow margin 56.19% 6.54% 10.15%
Return on equity 53.85% (14.28%) 11.30%
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% 15.44%
EPS growth (last fiscal year) (23.77%) 157.84% —
Revenue growth, 5-year CAGR 10.05% 33.88% 8.96%
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 10.43% 9.21% 7.29%
Payout ratio 0.47 1.79 0.64

Size

Metric FRO KNTK Oil & Gas Midstream median
Market cap 10.54b 8.53b 3.61b

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