Critical Contrast: Toro (NASDAQ:TORO) versus Frontline (NYSE:FRO)

Frontline (NYSE:FRO) and Toro (NASDAQ:TORO) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares Frontline and Toro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontline	29.42%	19.73%	7.79%
Toro	247.75%	37.32%	21.72%

Valuation and Earnings

This table compares Frontline and Toro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontline	$1.83 billion	N/A	$656.41 million	$2.66	7.29
Toro	$78.47 million	0.79	$140.64 million	$1.86	1.76

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

Insider & Institutional Ownership

22.7% of Frontline shares are owned by institutional investors. Comparatively, 1.7% of Toro shares are owned by institutional investors. 48.1% of Frontline shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Frontline and Toro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontline	0	1	4	1	3.00
Toro	0	0	0	0	N/A

Frontline presently has a consensus target price of $28.06, indicating a potential upside of 44.71%. Given Frontline’s higher probable upside, analysts clearly believe Frontline is more favorable than Toro.

Volatility & Risk

Frontline has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Summary

Frontline beats Toro on 9 of the 13 factors compared between the two stocks.

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.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.