Paramount Resources (OTCMKTS:PRMRF) & Frontline (NYSE:FRO) Head-To-Head Comparison

Frontline (NYSE:FRO) and Paramount Resources (OTCMKTS:PRMRF) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Dividends

Frontline pays an annual dividend of $6.20 per share and has a dividend yield of 12.0%. Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 1.8%. Frontline pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Resources pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontline	$1.97 billion	5.83	$379.08 million	$6.67	7.74
Paramount Resources	$692.73 million	5.02	$922.32 million	$0.57	41.77

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

Analyst Ratings

This is a summary of current ratings and price targets for Frontline and Paramount Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontline	2	5	4	0	2.18
Paramount Resources	0	4	4	1	2.67

Frontline currently has a consensus target price of $41.62, suggesting a potential downside of 19.38%. Given Frontline’s higher possible upside, equities analysts clearly believe Frontline is more favorable than Paramount Resources.

Institutional and Insider Ownership

22.7% of Frontline shares are held by institutional investors. Comparatively, 4.1% of Paramount Resources shares are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Comparatively, 36.3% of Paramount Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Frontline and Paramount Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontline	49.47%	44.24%	20.89%
Paramount Resources	12.52%	4.31%	3.20%

Volatility and Risk

Frontline has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Paramount Resources has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Summary

Frontline beats Paramount Resources on 10 of the 16 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 Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based in Calgary, Canada.