Euronav vs Frontline Which Is More Attractive?

Euronav and Frontline are two prominent players in the global shipping industry, specializing in the transportation of crude oil and petroleum products. Both companies have established themselves as key players in the market, with a strong track record of success and profitability. However, there are key differences between the two companies in terms of their business models, fleet size, and market positioning. This comparison will analyze the strengths and weaknesses of Euronav and Frontline stocks to help investors make informed decisions.

Euronav or Frontline?

When comparing Euronav and Frontline, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Euronav and Frontline.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Euronav has a dividend yield of 27.72%, while Frontline has a dividend yield of 13.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Euronav reports a 5-year dividend growth of 92.69% year and a payout ratio of 54.37%. On the other hand, Frontline reports a 5-year dividend growth of 0.00% year and a payout ratio of 77.70%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Euronav P/E ratio at 2.86 and Frontline's P/E ratio at 5.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Euronav P/B ratio is 1.74 while Frontline's P/B ratio is 1.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Euronav has seen a 5-year revenue growth of 1.00%, while Frontline's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Euronav's ROE at 55.26% and Frontline's ROE at 23.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.22 for Euronav and $13.84 for Frontline. Over the past year, Euronav's prices ranged from $14.10 to $21.26, with a yearly change of 50.78%. Frontline's prices fluctuated between $13.71 and $29.39, with a yearly change of 114.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.