Frontline PLC (FRO) vs Western Midstream Partners, LP (WES)

Frontline PLC and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Western Midstream Partners, LP is the larger, with a market value of $18.7B against $10.5B — 1.8× the size. Frontline PLC trades at the lower P/E: 7.1× against 14.3×. Frontline PLC grew revenue faster over the last twelve months: 63.5% against 18.0%. Frontline PLC has the higher net margin (49.4% vs 29.0%) and the higher return on invested capital (19.4% vs 8.16%). Both pay a dividend; Frontline PLC yields more (10.4% vs 8.96%). Across the 23 metrics below, Frontline PLC leads on 21 and Western Midstream Partners, LP on 2.

Valuation

Metric FRO WES Oil & Gas Midstream median
P/E 7.14 14.29 13.19
P/S 3.52 4.19 2.60
P/B 3.36 4.12 2.08
Price to free cash flow 6.27 15.35 10.14
EV/EBITDA 7.80 10.75 8.11
EV/Sales 4.22 6.26 3.89
Earnings yield 14.01% 7.00% 6.83%
Free cash flow yield 15.96% 6.51% 6.94%

Profitability

Metric FRO WES Oil & Gas Midstream median
Gross margin 66.67% 92.08% 58.81%
Operating margin 54.14% 40.23% 32.14%
Net margin 49.37% 29.00% 21.16%
Free cash flow margin 56.19% 27.30% 10.15%
Return on equity 53.85% 32.48% 11.30%
Return on assets 24.94% 8.82% 5.00%
Return on invested capital 19.35% 8.16% 6.13%

Growth

Metric FRO WES Oil & Gas Midstream median
Revenue growth (TTM) 63.48% 18.00% 15.44%
EPS growth (last fiscal year) (23.77%) (25.87%) —
Revenue growth, 5-year CAGR 10.05% 6.75% 8.96%
Net income growth, 5-year CAGR (1.69%) 17.48% 0.00%

Health

Metric FRO WES Oil & Gas Midstream median
Debt to equity 0.77 2.06 0.78
Current ratio 1.87 0.91 1.19
Net debt to EBITDA 3.03 3.37 3.42

Dividend

Metric FRO WES Oil & Gas Midstream median
Dividend yield 10.43% 8.96% 7.29%
Payout ratio 0.47 — 0.64

Size

Metric FRO WES Oil & Gas Midstream median
Market cap 10.54b 18.74b 3.61b

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