Frontline vs Euronav Which Performs Better?

Frontline and Euronav are two prominent players in the competitive world of shipping stocks. Frontline, based in Bermuda, specializes in crude oil tankers, while Euronav, headquartered in Belgium, focuses on the transportation of petroleum products. Both companies have experienced fluctuations in their stock prices due to various external factors such as global oil prices, geopolitical tensions, and market demand. Investors looking to diversify their portfolio with exposure to the shipping industry may find opportunities in both Frontline and Euronav stocks.

Frontline or Euronav?

When comparing Frontline and Euronav, 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 Euronav.

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 Euronav has a dividend yield of 31.12%. 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, Euronav reports a 5-year dividend growth of 92.69% year and a payout ratio of 54.37%.

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 Euronav's P/E ratio at 2.86. 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 Euronav's P/B ratio is 1.74.

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 Euronav's is 1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Frontline's ROE at 25.55% and Euronav's ROE at 55.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.80 for Frontline and $16.22 for Euronav. Over the past year, Frontline's prices ranged from $18.34 to $29.39, with a yearly change of 60.25%. Euronav's prices fluctuated between $14.10 and $21.26, with a yearly change of 50.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.