Financial Analysis: Frontline (NYSE:FRO) vs. Grupo TMM SAB (NYSE:GTMAY)

Frontline (NYSE:FRO) and Grupo TMM SAB (OTCMKTS:GTMAY) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Frontline and Grupo TMM SAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Frontline 5.52% 3.08% 1.14%
Grupo TMM SAB -1.34% -0.91% -0.48%

Institutional and Insider Ownership

18.8% of Frontline shares are owned by institutional investors. Comparatively, 1.5% of Grupo TMM SAB shares are owned by institutional investors. 48.1% of Frontline shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Frontline and Grupo TMM SAB, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frontline 0 5 2 0 2.29
Grupo TMM SAB 0 0 0 0 N/A

Frontline currently has a consensus price target of $7.16, suggesting a potential upside of 3.62%. Given Frontline’s higher possible upside, equities analysts plainly believe Frontline is more favorable than Grupo TMM SAB.

Valuation and Earnings

This table compares Frontline and Grupo TMM SAB’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Frontline $742.27 million 1.58 -$8.88 million ($0.14) -49.36
Grupo TMM SAB $79.31 million 0.43 $990,000.00 N/A N/A

Grupo TMM SAB has lower revenue, but higher earnings than Frontline.

Risk and Volatility

Frontline has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Grupo TMM SAB has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500.

Summary

Frontline beats Grupo TMM SAB on 10 of the 11 factors compared between the two stocks.

Frontline Company Profile

Frontline Ltd., 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, 2018, the company's fleet consisted of 61 vessels, which included very large crude carrier, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton. It is also involved in the charter, purchase, and sale of vessels. The company is based in Hamilton, Bermuda.

Grupo TMM SAB Company Profile

Grupo TMM, S.A.B., together with its subsidiaries, operates as a logistics and transportation company in Mexico. It operates in four segments: Maritime, Logistics, Ports and Terminals, and Warehousing. The company offers maritime transportation services, including offshore vessels, which provide transportation and other services to the Mexican offshore oil industry; tankers that transport petroleum products in Mexican waters; parcel tankers, which transport liquid chemical and vegetable oil cargos from and to the United States and Mexico; tugboats that provide towing services at the port of Manzanillo, Mexico; and dry bulk carriers that transport unpackaged commodities, such as steel between South America, the Caribbean, and Mexico. As of March 31, 2018, it operated through a fleet of 39 vessels, which included product and chemical tankers, harbor tugs, and various offshore supply vessels. The company also provides ship repair services through two floating drydocks with a capacity of 3,000 metric tons each; port agent services to vessel owners and operators in the Mexican ports; and warehousing and bonded warehousing facility management services, as well as operates the Tuxpan, Tampico, and Acapulco port facilities. In addition, it offers logistics services, including consulting, analytical, and logistics outsourcing; logistics network analysis; logistics information process design; intermodal transport; supply chain and logistics management; product handling and repackaging; local pre-assembly; container maintenance and repair; and inbound and outbound distribution using various transportation modes to automobile manufacturers and retailers. The company was founded in 1955 and is headquartered in Mexico City, Mexico.

Receive News & Ratings for Frontline Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Frontline and related companies with MarketBeat.com's FREE daily email newsletter.