Critical Review: Frontline (NYSE:FRO) & Navios Maritime Containers (NYSE:NMCI)

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Frontline (NYSE:FRO) and Navios Maritime Containers (NASDAQ:NMCI) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Frontline and Navios Maritime Containers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frontline 0 5 2 0 2.29
Navios Maritime Containers 0 0 1 0 3.00

Frontline currently has a consensus price target of $7.16, indicating a potential downside of 0.28%. Navios Maritime Containers has a consensus price target of $9.00, indicating a potential upside of 382.57%. Given Navios Maritime Containers’ stronger consensus rating and higher probable upside, analysts plainly believe Navios Maritime Containers is more favorable than Frontline.

Profitability

This table compares Frontline and Navios Maritime Containers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Frontline 5.52% 3.08% 1.14%
Navios Maritime Containers 4.11% 4.53% 2.05%

Valuation & Earnings

This table compares Frontline and Navios Maritime Containers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Frontline $742.27 million 1.64 -$8.88 million ($0.14) -51.29
Navios Maritime Containers $133.92 million 0.48 $12.70 million $0.53 3.52

Navios Maritime Containers has lower revenue, but higher earnings than Frontline. Frontline is trading at a lower price-to-earnings ratio than Navios Maritime Containers, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

18.8% of Frontline shares are held by institutional investors. Comparatively, 31.3% of Navios Maritime Containers shares are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Navios Maritime Containers beats Frontline on 8 of the 13 factors compared between the two stocks.

Frontline Company Profile

Frontline Ltd., 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, 2018, the company's fleet consisted of 61 vessels, which included very large crude carrier, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton. It is also involved in the charter, purchase, and sale of vessels. The company is based in Hamilton, Bermuda.

Navios Maritime Containers Company Profile

Navios Maritime Containers L.P. owns and operates containerships in Asia and Europe. As of March 6, 2019, it owned a fleet of 30 vessels. The company was founded in 2017 and is based in Monte Carlo, Monaco.

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