Head-To-Head Comparison: Navios Maritime Midstream (NAP) & Frontline (FRO)

Navios Maritime Midstream (NYSE: NAP) and Frontline (NYSE:FRO) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

How to Become a New Pot Stock Millionaire

This table compares Navios Maritime Midstream and Frontline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Midstream 14.73% 4.64% 2.63%
Frontline -40.98% -0.31% -0.14%

Dividends

Navios Maritime Midstream pays an annual dividend of $1.69 per share and has a dividend yield of 36.2%. Frontline pays an annual dividend of $0.15 per share and has a dividend yield of 3.1%. Navios Maritime Midstream pays out 241.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Frontline pays out -500.0% of its earnings in the form of a dividend. Frontline has raised its dividend for 2 consecutive years.

Volatility and Risk

Navios Maritime Midstream has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Frontline has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Earnings & Valuation

This table compares Navios Maritime Midstream and Frontline’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navios Maritime Midstream $83.05 million 1.20 $14.63 million $0.70 6.67
Frontline $646.33 million 1.28 -$264.86 million ($0.03) -162.00

Navios Maritime Midstream has higher earnings, but lower revenue than Frontline. Frontline is trading at a lower price-to-earnings ratio than Navios Maritime Midstream, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

9.3% of Navios Maritime Midstream shares are held by institutional investors. Comparatively, 14.4% of Frontline shares are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Navios Maritime Midstream and Frontline, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Midstream 1 1 1 0 2.00
Frontline 1 1 2 0 2.25

Navios Maritime Midstream presently has a consensus price target of $6.83, suggesting a potential upside of 46.32%. Frontline has a consensus price target of $5.67, suggesting a potential upside of 16.60%. Given Navios Maritime Midstream’s higher probable upside, research analysts clearly believe Navios Maritime Midstream is more favorable than Frontline.

Summary

Frontline beats Navios Maritime Midstream on 9 of the 17 factors compared between the two stocks.

About Navios Maritime Midstream

Navios Maritime Midstream Partners L.P. owns, operates, and acquires crude oil tankers, refined petroleum product tankers, chemical tankers, and liquefied petroleum gas tankers. The company provides seaborne shipping services through its vessels under long-term employment contracts to international oil companies, refiners, and large vessel operators. As of December 31, 2017, it owned six very large crude carrier vessels. Navios Maritime Midstream Partners GP LLC operates as the general partner of the company. Navios Maritime Midstream Partners L.P. was founded in 2014 and is based in Monaco. Navios Maritime Midstream Partners L.P. is a subsidiary of Navios Maritime Acquisition Corporation.

About Frontline

Frontline Ltd. is a shipping company. The Company is engaged in the seaborne transportation of crude oil and oil products. Its tankers segment includes crude oil tankers and product tankers. As of December 31, 2016, the Company’s fleet consisted of 28 vessels owned by the Company (seven very large crude carriers (VLCCs), 10 Suezmax tankers and 11 Aframax/LR2 tankers); 13 vessels that are under capital leases (11 VLCCs and two Suezmax tankers); one VLCC that is recorded as an investment in finance lease; four vessels chartered-in for periods of 12 months, including extension options (two VLCCs and two Suezmax tankers); two VLCCs where cost/revenue is split equally with a third party (of which one is chartered-in by it and one by a third party); three medium range product tankers that are chartered-in on short term time charters with a remaining duration of less than two months, and five vessels that are under commercial management (two Suezmax tankers and three Aframax oil tankers).

Receive News & Ratings for Navios Maritime Midstream Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Navios Maritime Midstream and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply