A.P. Moller-Maersk (OTCMKTS:AMKBY) versus Frontline (NYSE:FRO) Head-To-Head Contrast

Frontline (NYSE:FRO) and A.P. Moller-Maersk (OTCMKTS:AMKBY) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider and Institutional Ownership

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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Frontline has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Frontline and A.P. Moller-Maersk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontline	0	3	4	0	2.57
A.P. Moller-Maersk	8	4	0	1	1.54

Frontline presently has a consensus target price of $38.00, indicating a potential upside of 7.93%. Given Frontline’s stronger consensus rating and higher probable upside, equities analysts clearly believe Frontline is more favorable than A.P. Moller-Maersk.

Dividends

Frontline pays an annual dividend of $4.12 per share and has a dividend yield of 11.7%. A.P. Moller-Maersk pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Frontline pays out 242.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. A.P. Moller-Maersk pays out 22.7% of its earnings in the form of a dividend.

Profitability

This table compares Frontline and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontline	19.31%	16.51%	6.64%
A.P. Moller-Maersk	5.05%	4.87%	3.15%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontline	$1.97 billion	3.99	$379.08 million	$1.70	20.71
A.P. Moller-Maersk	$53.99 billion	0.72	$2.73 billion	$0.88	14.00

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

Summary

Frontline beats A.P. Moller-Maersk on 12 of the 17 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 A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.