Frontline (NYSE: FRO) and StealthGas (NASDAQ:GASS) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
This is a breakdown of recent ratings for Frontline and StealthGas, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Frontline currently has a consensus price target of $5.33, suggesting a potential downside of 4.59%. StealthGas has a consensus price target of $7.00, suggesting a potential upside of 79.03%. Given StealthGas’ stronger consensus rating and higher possible upside, analysts clearly believe StealthGas is more favorable than Frontline.
Volatility and Risk
Frontline has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, StealthGas has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.
Valuation and Earnings
This table compares Frontline and StealthGas’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Frontline||$646.33 million||1.47||-$264.86 million||($0.03)||-186.33|
|StealthGas||$154.31 million||1.01||-$1.21 million||$0.14||27.93|
StealthGas has lower revenue, but higher earnings than Frontline. Frontline is trading at a lower price-to-earnings ratio than StealthGas, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
14.5% of Frontline shares are owned by institutional investors. Comparatively, 61.8% of StealthGas shares are owned by institutional investors. 48.1% of Frontline shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Frontline pays an annual dividend of $0.15 per share and has a dividend yield of 2.7%. StealthGas does not pay a dividend. Frontline pays out -500.0% of its earnings in the form of a dividend. Frontline has increased its dividend for 2 consecutive years.
This table compares Frontline and StealthGas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
StealthGas beats Frontline on 9 of the 17 factors compared between the two stocks.
Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. As of December 31, 2017, the company's fleet consisted of 61 vessels, including VLCC, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton. It is also involved in the charter, purchase, and sale of vessels. The company is based in Hamilton, Bermuda.
StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. It also provides crude oil and product carriers chartered to oil producers, refiners, and commodities traders. The company carries various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals; and crude oil. As of April 1, 2017, it had a fleet of 51 LPG carriers. The company was founded in 2004 and is based in Athens, Greece.
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