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 $15.0B against $10.5B — 1.4× the size. Frontline PLC trades at the lower P/E: 7.1× against 292×. Viper Energy Inc. grew revenue faster over the last twelve months: 107.8% against 63.5%. Frontline PLC has the higher net margin (49.4% vs 2.89%) and the higher return on invested capital (19.4% vs 1.32%). Both pay a dividend; Frontline PLC yields more (10.4% vs 6.49%). 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 7.14 292.36 13.19
P/S 3.52 3.89 2.60
P/B 3.36 0.77 2.08
Price to free cash flow 6.27 10.38 10.14
EV/EBITDA 7.80 9.28 8.11
EV/Sales 4.22 4.86 3.89
Earnings yield 14.01% 0.34% 6.83%
Free cash flow yield 15.96% 9.63% 6.94%

Profitability

Metric FRO VNOM Oil & Gas Midstream median
Gross margin 66.67% 100.00% 58.81%
Operating margin 54.14% 12.30% 32.14%
Net margin 49.37% 2.89% 21.16%
Free cash flow margin 56.19% 37.43% 10.15%
Return on equity 53.85% 0.62% 11.30%
Return on assets 24.94% 0.54% 5.00%
Return on invested capital 19.35% 1.32% 6.13%

Growth

Metric FRO VNOM Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 107.84% 15.44%
EPS growth (last fiscal year) (23.77%) (112.57%) —
Revenue growth, 5-year CAGR 10.05% 40.96% 8.96%
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 0.16 0.78
Current ratio 1.87 6.37 1.19
Net debt to EBITDA 3.03 4.65 3.42

Dividend

Metric FRO VNOM Oil & Gas Midstream median
Dividend yield 10.43% 6.49% 7.29%
Payout ratio 0.47 — 0.64

Size

Metric FRO VNOM Oil & Gas Midstream median
Market cap 10.54b 14.96b 3.61b

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