Head to Head Analysis: Hafnia (NYSE:HAFN) vs. Frontline (NYSE:FRO)

Hafnia (NYSE:HAFN) and Frontline (NYSE:FRO) are both mid-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

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	4.09	$339.68 million	$0.68	11.21
Frontline	$1.97 billion	3.93	$379.08 million	$1.70	20.47

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%

Dividends

Hafnia pays an annual dividend of $0.70 per share and has a dividend yield of 9.2%. Frontline pays an annual dividend of $4.12 per share and has a dividend yield of 11.8%. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hafnia and Frontline, as reported by MarketBeat.

	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, indicating a potential upside of 9.19%. Given Frontline’s higher possible upside, analysts clearly believe Frontline is more favorable than Hafnia.

Volatility & Risk

Hafnia has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Institutional and Insider Ownership

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

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.