Frontline PLC (FRO) vs Viper Energy Inc. (VNOM)

Frontline PLC and Viper Energy Inc. are both Oil & Gas Midstream companies. Viper Energy Inc. is the larger, with a market value of $14.4B against $10.0B — 1.4× the size. Frontline PLC trades at the lower P/E: 6.7× against 18.1×. Viper Energy Inc. grew revenue faster over the last twelve months: 92.1% against 63.5%. Frontline PLC has the higher net margin (49.4% vs 12.1%) and the higher return on invested capital (19.4% vs 4.01%). Both pay a dividend; Frontline PLC yields more (12.0% vs 6.14%). Across the 23 metrics below, Frontline PLC leads on 16 and Viper Energy Inc. on 7.

Valuation

Metric FRO VNOM Oil & Gas Midstream median
P/E 6.72 18.10 11.68
P/S 3.32 3.39 2.39
P/B 3.17 0.74 1.68
Price to free cash flow 5.90 74.48 8.52
EV/EBITDA 7.42 9.84 9.03
EV/Sales 4.02 4.60 3.43
Earnings yield 14.87% 5.53% 7.78%
Free cash flow yield 16.94% 1.34% 7.11%

Profitability

Metric FRO VNOM Oil & Gas Midstream median
Gross margin 66.67% 100.00% 54.87%
Operating margin 54.14% 36.16% 34.73%
Net margin 49.37% 12.08% 20.12%
Free cash flow margin 56.19% 4.55% 14.43%
Return on equity 53.85% 2.58% 11.73%
Return on assets 24.94% 2.07% 4.43%
Return on invested capital 19.35% 4.01% 6.10%

Growth

Metric FRO VNOM Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 92.09% 14.88%
EPS growth (last fiscal year) (23.77%) (112.57%) (7.78%)
Revenue growth, 5-year CAGR 10.05% 40.96% 10.05%
Net income growth, 5-year CAGR (1.69%) 0.00% 0.00%

Health

Metric FRO VNOM Oil & Gas Midstream median
Debt to equity 0.77 0.23 0.77
Current ratio 1.87 5.92 1.19
Net debt to EBITDA 3.03 4.65 3.46

Dividend

Metric FRO VNOM Oil & Gas Midstream median
Dividend yield 12.00% 6.14% 4.94%
Payout ratio 0.81 1.12 0.73

Size

Metric FRO VNOM Oil & Gas Midstream median
Market cap 9.95b 14.36b 3.56b

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