Oil & Gas Midstream
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TK vs FRO
Revenue, margins, valuation, and 5-year total return — side by side.
Oil & Gas Midstream
TK vs FRO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Oil & Gas Midstream | Oil & Gas Midstream |
| Market Cap | $1.14B | $8.39B |
| Revenue (TTM) | $993M | $1.77B |
| Net Income (TTM) | $79M | $218M |
| Gross Margin | 28.1% | 26.5% |
| Operating Margin | 24.8% | 25.5% |
| Forward P/E | 61.9x | 5.9x |
| Total Debt | $66M | $3.75B |
| Cash & Equiv. | $685M | $414M |
TK vs FRO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Teekay Corporation (TK) | 100 | 464.8 | +364.8% |
| Frontline Ltd. (FRO) | 100 | 412.9 | +312.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TK vs FRO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TK is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 3 yrs, beta 0.38, yield 6.7%
- Lower volatility, beta 0.38, Low D/E 3.4%, current ratio 6.99x
- Beta 0.38, yield 6.7%, current ratio 6.99x
FRO carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 13.8%, EPS growth -24.4%, 3Y rev CAGR 39.9%
- 5.1% 10Y total return vs TK's 87.8%
- 13.8% revenue growth vs TK's -16.7%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 13.8% revenue growth vs TK's -16.7% | |
| Value | Lower P/E (5.9x vs 61.9x) | |
| Quality / Margins | 12.3% margin vs TK's 7.9% | |
| Stability / Safety | Beta 0.36 vs TK's 0.38 | |
| Dividends | 6.7% yield, 3-year raise streak, vs FRO's 5.2% | |
| Momentum (1Y) | +124.6% vs TK's +87.7% | |
| Efficiency (ROA) | 3.8% ROA vs TK's 3.5%, ROIC 10.6% vs 19.1% |
TK vs FRO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
TK vs FRO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
FRO leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
FRO is the larger business by revenue, generating $1.8B annually — 1.8x TK's $993M. Profitability is closely matched — net margins range from 12.3% (FRO) to 7.9% (TK). On growth, FRO holds the edge at -11.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $993M | $1.8B |
| EBITDAEarnings before interest/tax | $334M | $781M |
| Net IncomeAfter-tax profit | $79M | $218M |
| Free Cash FlowCash after capex | $241M | $557M |
| Gross MarginGross profit ÷ Revenue | +28.1% | +26.5% |
| Operating MarginEBIT ÷ Revenue | +24.8% | +25.5% |
| Net MarginNet income ÷ Revenue | +7.9% | +12.3% |
| FCF MarginFCF ÷ Revenue | +24.2% | +31.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -29.0% | -11.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.4% | -33.3% |
Valuation Metrics
TK leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 9.6x trailing earnings, TK trades at a 43% valuation discount to FRO's 16.9x P/E. On an enterprise value basis, TK's 1.1x EV/EBITDA is more attractive than FRO's 10.5x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $1.1B | $8.4B |
| Enterprise ValueMkt cap + debt − cash | $525M | $11.7B |
| Trailing P/EPrice ÷ TTM EPS | 9.59x | 16.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 61.91x | 5.93x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.72x |
| EV / EBITDAEnterprise value multiple | 1.14x | 10.46x |
| Price / SalesMarket cap ÷ Revenue | 0.94x | 4.09x |
| Price / BookPrice ÷ Book value/share | 0.66x | 3.59x |
| Price / FCFMarket cap ÷ FCF | 2.92x | — |
Profitability & Efficiency
TK leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
FRO delivers a 9.4% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $4 for TK. TK carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to FRO's 1.60x. On the Piotroski fundamental quality scale (0–9), TK scores 6/9 vs FRO's 5/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +4.0% | +9.4% |
| ROA (TTM)Return on assets | +3.5% | +3.8% |
| ROICReturn on invested capital | +19.1% | +10.6% |
| ROCEReturn on capital employed | +18.1% | +14.1% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.03x | 1.60x |
| Net DebtTotal debt minus cash | -$620M | $3.3B |
| Cash & Equiv.Liquid assets | $685M | $414M |
| Total DebtShort + long-term debt | $66M | $3.7B |
| Interest CoverageEBIT ÷ Interest expense | 69.29x | 1.87x |
Total Returns (Dividends Reinvested)
FRO leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in FRO five years ago would be worth $57,145 today (with dividends reinvested), compared to $52,251 for TK. Over the past 12 months, FRO leads with a +124.6% total return vs TK's +87.7%. The 3-year compound annual growth rate (CAGR) favors TK at 49.8% vs FRO's 44.3% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +54.4% | +88.2% |
| 1-Year ReturnPast 12 months | +87.7% | +124.6% |
| 3-Year ReturnCumulative with dividends | +235.9% | +200.6% |
| 5-Year ReturnCumulative with dividends | +422.5% | +471.4% |
| 10-Year ReturnCumulative with dividends | +87.8% | +506.8% |
| CAGR (3Y)Annualised 3-year return | +49.8% | +44.3% |
Risk & Volatility
Evenly matched — TK and FRO each lead in 1 of 2 comparable metrics.
Risk & Volatility
FRO is the less volatile stock with a 0.36 beta — it tends to amplify market swings less than TK's 0.38 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.38x | 0.36x |
| 52-Week HighHighest price in past year | $14.22 | $39.89 |
| 52-Week LowLowest price in past year | $7.12 | $16.25 |
| % of 52W HighCurrent price vs 52-week peak | +95.8% | +94.5% |
| RSI (14)Momentum oscillator 0–100 | 69.5 | 64.2 |
| Avg Volume (50D)Average daily shares traded | 518K | 4.0M |
Analyst Outlook
TK leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TK as "Buy" and FRO as "Hold". For income investors, TK offers the higher dividend yield at 6.69% vs FRO's 5.17%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | — | $38.50 |
| # AnalystsCovering analysts | 14 | 22 |
| Dividend YieldAnnual dividend ÷ price | +6.7% | +5.2% |
| Dividend StreakConsecutive years of raises | 3 | 0 |
| Dividend / ShareAnnual DPS | $0.91 | $1.95 |
| Buyback YieldShare repurchases ÷ mkt cap | +10.2% | 0.0% |
TK leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). FRO leads in 2 (Income & Cash Flow, Total Returns). 1 tied.
TK vs FRO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TK or FRO a better buy right now?
For growth investors, Frontline Ltd.
(FRO) is the stronger pick with 13. 8% revenue growth year-over-year, versus -16. 7% for Teekay Corporation (TK). Teekay Corporation (TK) offers the better valuation at 9. 6x trailing P/E (61. 9x forward), making it the more compelling value choice. Analysts rate Teekay Corporation (TK) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — TK or FRO?
On trailing P/E, Teekay Corporation (TK) is the cheapest at 9.
6x versus Frontline Ltd. at 16. 9x. On forward P/E, Frontline Ltd. is actually cheaper at 5. 9x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — TK or FRO?
Over the past 5 years, Frontline Ltd.
(FRO) delivered a total return of +471. 4%, compared to +422. 5% for Teekay Corporation (TK). Over 10 years, the gap is even starker: FRO returned +506. 8% versus TK's +87. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TK or FRO?
By beta (market sensitivity over 5 years), Frontline Ltd.
(FRO) is the lower-risk stock at 0. 36β versus Teekay Corporation's 0. 38β — meaning TK is approximately 6% more volatile than FRO relative to the S&P 500. On balance sheet safety, Teekay Corporation (TK) carries a lower debt/equity ratio of 3% versus 160% for Frontline Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — TK or FRO?
By revenue growth (latest reported year), Frontline Ltd.
(FRO) is pulling ahead at 13. 8% versus -16. 7% for Teekay Corporation (TK). On earnings-per-share growth, the picture is similar: Teekay Corporation grew EPS -7. 8% year-over-year, compared to -24. 4% for Frontline Ltd.. Over a 3-year CAGR, FRO leads at 39. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TK or FRO?
Frontline Ltd.
(FRO) is the more profitable company, earning 24. 2% net margin versus 11. 0% for Teekay Corporation — meaning it keeps 24. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FRO leads at 38. 1% versus 29. 9% for TK. At the gross margin level — before operating expenses — FRO leads at 34. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is TK or FRO more undervalued right now?
On forward earnings alone, Frontline Ltd.
(FRO) trades at 5. 9x forward P/E versus 61. 9x for Teekay Corporation — 56. 0x cheaper on a one-year earnings basis.
08Which pays a better dividend — TK or FRO?
All stocks in this comparison pay dividends.
Teekay Corporation (TK) offers the highest yield at 6. 7%, versus 5. 2% for Frontline Ltd. (FRO).
09Is TK or FRO better for a retirement portfolio?
For long-horizon retirement investors, Frontline Ltd.
(FRO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 36), 5. 2% yield, +506. 8% 10Y return). Both have compounded well over 10 years (FRO: +506. 8%, TK: +87. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between TK and FRO?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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