Head-To-Head Comparison: Frontline (NYSE:FRO) and Hafnia (NYSE:HAFN)
by Sarita Garza · The Markets DailyHafnia (NYSE:HAFN – Get Free Report) and Frontline (NYSE:FRO – Get Free Report) are both mid-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Dividends
Hafnia pays an annual dividend of $0.70 per share and has a dividend yield of 8.8%. Frontline pays an annual dividend of $4.12 per share and has a dividend yield of 11.3%. Hafnia pays out 102.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
Institutional & Insider 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Hafnia and Frontline, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hafnia | 0 | 2 | 0 | 1 | 2.67 |
| Frontline | 0 | 3 | 4 | 0 | 2.57 |
Frontline has a consensus target price of $38.00, suggesting a potential upside of 3.91%. Given Frontline’s higher probable upside, analysts plainly believe Frontline is more favorable than Hafnia.
Risk & Volatility
Hafnia has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.
Earnings and Valuation
This table compares Hafnia and Frontline”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hafnia | $955.87 million | 4.25 | $339.68 million | $0.68 | 11.65 |
| Frontline | $1.97 billion | 4.13 | $379.08 million | $1.70 | 21.51 |
Frontline has higher revenue and earnings than Hafnia. Hafnia is trading at a lower price-to-earnings ratio than Frontline, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hafnia and Frontline’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hafnia | 35.54% | 14.71% | 9.21% |
| Frontline | 19.31% | 16.51% | 6.64% |
Summary
Frontline beats Hafnia on 10 of the 17 factors compared between the two stocks.
About Hafnia
Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.
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.