Analyzing Frontline (FRO) & Enbridge Energy Management (EEQ)
Frontline (NYSE: FRO) and Enbridge Energy Management (NYSE:EEQ) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
This table compares Frontline and Enbridge Energy Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy Management||N/A||-750.00%||-750.00%|
This is a breakdown of current recommendations for Frontline and Enbridge Energy Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy Management||0||3||5||0||2.63|
Frontline presently has a consensus price target of $6.25, suggesting a potential upside of 19.96%. Enbridge Energy Management has a consensus price target of $25.00, suggesting a potential upside of 76.06%. Given Enbridge Energy Management’s stronger consensus rating and higher probable upside, analysts plainly believe Enbridge Energy Management is more favorable than Frontline.
Risk & Volatility
Frontline has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Enbridge Energy Management has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
Earnings and Valuation
This table compares Frontline and Enbridge Energy Management’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Frontline||$702.25 million||1.26||$313.91 million||$0.40||13.03|
|Enbridge Energy Management||N/A||N/A||N/A||N/A||N/A|
Frontline has higher revenue and earnings than Enbridge Energy Management.
Frontline pays an annual dividend of $0.60 per share and has a dividend yield of 11.5%. Enbridge Energy Management pays an annual dividend of $1.10 per share and has a dividend yield of 7.7%. Frontline pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
11.6% of Frontline shares are held by institutional investors. Comparatively, 80.3% of Enbridge Energy Management shares are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Comparatively, 0.3% of Enbridge Energy Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Frontline beats Enbridge Energy Management on 7 of the 12 factors compared between the two stocks.
Frontline Ltd. is a shipping company. The Company is engaged in the seaborne transportation of crude oil and oil products. Its tankers segment includes crude oil tankers and product tankers. As of December 31, 2016, the Company’s fleet consisted of 28 vessels owned by the Company (seven very large crude carriers (VLCCs), 10 Suezmax tankers and 11 Aframax/LR2 tankers); 13 vessels that are under capital leases (11 VLCCs and two Suezmax tankers); one VLCC that is recorded as an investment in finance lease; four vessels chartered-in for periods of 12 months, including extension options (two VLCCs and two Suezmax tankers); two VLCCs where cost/revenue is split equally with a third party (of which one is chartered-in by it and one by a third party); three medium range product tankers that are chartered-in on short term time charters with a remaining duration of less than two months, and five vessels that are under commercial management (two Suezmax tankers and three Aframax oil tankers).
About Enbridge Energy Management
Enbridge Energy Management, L.L.C. is a limited partner of Enbridge Energy Partners, L.P. (the Partnership). The Company owns i-units, a special class of the Partnership’s limited partner interests. The Company manages the business of the Partnership. The Partnership owns and operates crude oil and liquid petroleum transportation and storage assets, and natural gas gathering, treating, processing, transportation and marketing assets in the United States.
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