Frontline Ltd. versus Western Refining Logistics, LP Head to Head Compare

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This is a head to head compare of Frontline Ltd. (NYSE:FRO) and Western Refining Logistics, LP (NYSE:WNRL) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
FRO -8.9% -13.9% -21.5%
WNRL +10.0% +3.7% -0.8%

Frontline Ltd. has a higher fundamental rating than Western Refining Logistics, LP which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Western Refining Logistics, LP has substantially higher revenue in the last year than Frontline Ltd.. Raw revenue comps do not affect the head to head rating.

Both FRO and WNRL show positive earnings over the last year with the edge to FRO.

Net Income

WNRL generates larger revenue per employee ($4.6 million) than FRO ($3.7 million), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Frontline Ltd. generates $1.25 in revenue for every $1 of expense, notably higher than Western Refining Logistics, LP's $1.02.

Revenue per Dollar of Expense

WNRL generates $0.03 in levered free cash flow for every $1 of revenue, while FRO generates a cash flow loss of $-0.60 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While Frontline Ltd. is growing revenue, Western Refining Logistics, LP revenue is actually shrinking. Frontline Ltd. revenue is growing faster than 50%.

Revenue Growth

For every $1 in revenue, the stock market prices in $1.62 in market cap for FRO and $0.68 in market cap for WNRL.

Price to Sales

Frontline Ltd. (NYSE:FRO)
Western Refining Logistics, LP (NYSE:WNRL) : 57 to 43