Reviewing Frontline (NYSE:FRO) and Keppel (OTCMKTS:KPELY)

Frontline (NYSE:FRO) and Keppel (OTCMKTS:KPELY) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider and Institutional Ownership

22.7% of Frontline shares are owned by institutional investors. 48.1% of Frontline shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Frontline and Keppel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontline	12.94%	10.27%	3.90%
Keppel	N/A	N/A	N/A

Valuation & Earnings

This table compares Frontline and Keppel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontline	$2.16 billion	2.42	$495.58 million	$1.07	22.01
Keppel	$4.94 billion	2.54	$712.27 million	N/A	N/A

Keppel has higher revenue and earnings than Frontline.

Dividends

Frontline pays an annual dividend of $1.44 per share and has a dividend yield of 6.1%. Keppel pays an annual dividend of $0.46 per share and has a dividend yield of 3.3%. Frontline pays out 134.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Frontline has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Keppel has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Frontline and Keppel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontline	1	1	3	0	2.40
Keppel	0	0	1	0	3.00

Frontline presently has a consensus price target of $21.87, indicating a potential downside of 7.15%. Given Frontline’s higher possible upside, equities research analysts clearly believe Frontline is more favorable than Keppel.

Summary

Frontline beats Keppel on 8 of the 14 factors compared between the two stocks.

About Frontline

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.