Frontline vs Bayer Which Performs Better?

Both Frontline Ltd. and Bayer AG are prominent companies in their respective industries. Frontline Ltd. is a global shipping company specializing in the transportation of crude oil and oil products. On the other hand, Bayer AG is a multinational pharmaceutical and life sciences company known for its healthcare products and agricultural chemicals. Both companies are publicly traded on major stock exchanges, with Frontline Ltd. being listed on the New York Stock Exchange and Bayer AG on the Frankfurt Stock Exchange. Investors often compare the performance of these companies to make informed decisions about their investments.

Frontline or Bayer?

When comparing Frontline and Bayer, 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 Frontline and Bayer.

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. Frontline has a dividend yield of 13.39%, while Bayer has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Frontline reports a 5-year dividend growth of 0.00% year and a payout ratio of 78.26%. On the other hand, Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -9.48%.

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 Frontline P/E ratio at 7.07 and Bayer's P/E ratio at -4.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Frontline P/B ratio is 1.73 while Bayer's P/B ratio is 0.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Frontline has seen a 5-year revenue growth of 0.84%, while Bayer's is 3.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontline's ROE at 25.55% and Bayer's ROE at -3.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.80 for Frontline and $6.45 for Bayer. Over the past year, Frontline's prices ranged from $18.34 to $29.39, with a yearly change of 60.25%. Bayer's prices fluctuated between $6.39 and $11.33, with a yearly change of 77.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.