Frontline PLC (FRO) vs Plains All American Pipeline, L.P. (PAA)

Frontline PLC and Plains All American Pipeline, L.P. are both Oil & Gas Midstream companies. Plains All American Pipeline, L.P. is the larger, with a market value of $17.4B against $10.5B — 1.6× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 6.8× against 7.1×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against 13.1%. Frontline PLC has the higher net margin (49.4% vs 4.87%) and the higher return on invested capital (19.4% vs 4.74%). Both pay a dividend; Frontline PLC yields more (10.4% vs 7.20%). Across the 23 metrics below, Frontline PLC leads on 14 and Plains All American Pipeline, L.P. on 9.

Valuation

Metric FRO PAA Oil & Gas Midstream median
P/E 7.14 6.76 13.19
P/S 3.52 0.33 2.60
P/B 3.36 1.41 2.08
Price to free cash flow 6.27 7.07 10.14
EV/EBITDA 7.80 9.42 8.11
EV/Sales 4.22 0.47 3.89
Earnings yield 14.01% 14.78% 6.83%
Free cash flow yield 15.96% 14.15% 6.94%

Profitability

Metric FRO PAA Oil & Gas Midstream median
Gross margin 66.67% 5.55% 58.81%
Operating margin 54.14% 3.14% 32.14%
Net margin 49.37% 4.87% 21.16%
Free cash flow margin 56.19% 4.66% 10.15%
Return on equity 53.85% 21.98% 11.30%
Return on assets 24.94% 9.03% 5.00%
Return on invested capital 19.35% 4.74% 6.13%

Growth

Metric FRO PAA Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 13.08% 15.44%
EPS growth (last fiscal year) (23.77%) 127.40% —
Revenue growth, 5-year CAGR 10.05% 13.70% 8.96%
Net income growth, 5-year CAGR (1.69%) 0.00% 0.00%

Health

Metric FRO PAA Oil & Gas Midstream median
Debt to equity 0.77 0.59 0.78
Current ratio 1.87 1.12 1.19
Net debt to EBITDA 3.03 4.58 3.42

Dividend

Metric FRO PAA Oil & Gas Midstream median
Dividend yield 10.43% 7.20% 7.29%
Payout ratio 0.47 — 0.64

Size

Metric FRO PAA Oil & Gas Midstream median
Market cap 10.54b 17.39b 3.61b

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