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 $17.7B against $11.7B — 1.5× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 7.0× against 7.9×. 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 (10.3% vs 8.12%). 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 7.87 6.99 12.77
P/S 3.88 0.34 2.36
P/B 3.71 1.45 2.09
Price to free cash flow 6.91 7.31 9.71
EV/EBITDA 8.47 9.64 8.30
EV/Sales 4.58 0.48 3.88
Earnings yield 12.71% 14.30% 7.15%
Free cash flow yield 14.47% 13.68% 6.86%

Profitability

Metric FRO PAA Oil & Gas Midstream median
Gross margin 66.67% 5.55% 56.58%
Operating margin 54.14% 3.14% 34.18%
Net margin 49.37% 4.87% 22.50%
Free cash flow margin 56.19% 4.66% 13.70%
Return on equity 53.85% 21.98% 14.65%
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% 15.60%
EPS growth (last fiscal year) (23.77%) 127.40% (7.86%)
Revenue growth, 5-year CAGR 10.05% 13.70% 9.59%
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 10.25% 8.12% 4.54%
Payout ratio 0.81 0.57 0.76

Size

Metric FRO PAA Oil & Gas Midstream median
Market cap 11.70b 17.74b 3.73b

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