Comparing Frontline (NYSE:FRO) and Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR)

Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) and Frontline (NYSE:FRO) are both large-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Dividends

Petroleo Brasileiro S.A.- Petrobras pays an annual dividend of $0.43 per share and has a dividend yield of 2.1%. Frontline pays an annual dividend of $6.20 per share and has a dividend yield of 12.1%. Petroleo Brasileiro S.A.- Petrobras pays out 10.9% of its earnings in the form of a dividend. Frontline pays out 93.0% 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 & Earnings

This table compares Petroleo Brasileiro S.A.- Petrobras and Frontline”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petroleo Brasileiro S.A.- Petrobras	$89.19 billion	1.50	$19.63 billion	$3.96	5.25
Frontline	$1.97 billion	5.80	$379.08 million	$6.67	7.70

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

Insider and Institutional Ownership

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

Volatility and Risk

Petroleo Brasileiro S.A.- Petrobras has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Petroleo Brasileiro S.A.- Petrobras and Frontline, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petroleo Brasileiro S.A.- Petrobras	0	2	5	0	2.71
Frontline	2	5	4	0	2.18

Petroleo Brasileiro S.A.- Petrobras currently has a consensus price target of $19.48, indicating a potential downside of 6.32%. Frontline has a consensus price target of $45.37, indicating a potential downside of 11.72%. Given Petroleo Brasileiro S.A.- Petrobras’ stronger consensus rating and higher probable upside, analysts plainly believe Petroleo Brasileiro S.A.- Petrobras is more favorable than Frontline.

Profitability

This table compares Petroleo Brasileiro S.A.- Petrobras and Frontline’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petroleo Brasileiro S.A.- Petrobras	24.52%	30.61%	10.94%
Frontline	49.47%	44.24%	20.89%

Summary

Frontline beats Petroleo Brasileiro S.A.- Petrobras on 9 of the 16 factors compared between the two stocks.

About Petroleo Brasileiro S.A.- Petrobras

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil and internationally. The company operates through three segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, acquisition, and exports of crude oil; and production of fertilizers, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; renewable energy businesses; low carbon services; and natural gas processing business, as well as production of biodiesel and its co-products. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. In addition, it engages in research, development, production, transport, distribution, and trading of energy. Petróleo Brasileiro S.A. – Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

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.