Toro (NASDAQ:TORO) and Frontline (NYSE:FRO) Head to Head Analysis

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

Institutional and Insider Ownership

1.7% of Toro shares are owned by institutional investors. Comparatively, 22.7% of Frontline shares are owned by institutional investors. 48.1% of Frontline shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$34.93 million	1.72	$140.64 million	$1.86	1.70
Frontline	$1.93 billion	2.25	$656.41 million	$2.86	6.81

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.

Profitability

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

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

Risk and Volatility

Toro has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Frontline has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Toro and Frontline, as reported by MarketBeat.com.

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

Frontline has a consensus price target of $28.06, indicating a potential upside of 44.05%. Given Frontline’s higher possible upside, analysts plainly believe Frontline is more favorable than Toro.

Summary

Frontline beats Toro on 10 of the 14 factors compared between the two stocks.

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.

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.