Head-To-Head Review: Frontline (NYSE:FRO) & Inpex (OTCMKTS:IPXHY)

Inpex (OTCMKTS:IPXHY – Get Free Report) and Frontline (NYSE:FRO – Get Free Report) are both large-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Inpex and Frontline, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inpex 0 3 0 0 2.00
Frontline 2 5 4 0 2.18

Frontline has a consensus price target of $45.37, indicating a potential downside of 5.00%. Given Frontline’s stronger consensus rating and higher possible upside, analysts plainly believe Frontline is more favorable than Inpex.

Dividends

Inpex pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Frontline pays an annual dividend of $10.44 per share and has a dividend yield of 21.9%. Inpex pays out 17.6% of its earnings in the form of a dividend. Frontline pays out 156.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Inpex and Frontline”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inpex $13.45 billion 2.16 $2.52 billion $2.38 10.32
Frontline $1.97 billion 5.39 $379.08 million $6.67 7.16

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

Profitability

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

Net Margins Return on Equity Return on Assets
Inpex 21.93% 8.53% 5.51%
Frontline 49.47% 44.24% 20.89%

Risk and Volatility

Inpex has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Inpex shares are owned by institutional investors. Comparatively, 22.7% of Frontline shares are owned by institutional investors. 48.1% of Frontline shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Frontline beats Inpex on 11 of the 16 factors compared between the two stocks.

About Inpex

(Get Free Report)

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

About Frontline

(Get Free Report)

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.

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