Tsakos Energy Navigation (NYSE: TNP) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Risk and Volatility
Tsakos Energy Navigation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.
This table compares Tsakos Energy Navigation and Scorpio Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tsakos Energy Navigation||1.44%||1.34%||0.59%|
Institutional & Insider Ownership
27.2% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 64.8% of Scorpio Tankers shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Tsakos Energy Navigation and Scorpio Tankers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tsakos Energy Navigation||$529.18 million||0.53||$7.61 million||$0.24||13.71|
|Scorpio Tankers||$512.73 million||1.22||-$158.24 million||($0.47)||-4.09|
Tsakos Energy Navigation has higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than Tsakos Energy Navigation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Tsakos Energy Navigation and Scorpio Tankers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tsakos Energy Navigation||0||1||6||0||2.86|
Tsakos Energy Navigation presently has a consensus price target of $5.00, suggesting a potential upside of 51.98%. Scorpio Tankers has a consensus price target of $4.96, suggesting a potential upside of 158.56%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, analysts clearly believe Scorpio Tankers is more favorable than Tsakos Energy Navigation.
Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 6.1%. Scorpio Tankers pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. Tsakos Energy Navigation pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers pays out -8.5% of its earnings in the form of a dividend.
Tsakos Energy Navigation beats Scorpio Tankers on 9 of the 16 factors compared between the two stocks.
About Tsakos Energy Navigation
Tsakos Energy Navigation Limited provides international seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services to national, major, and other independent oil companies and refiners under long, medium, and short-term charters. As of April 5, 2017, it operated a fleet of 62 double-hull vessels, including 57 conventional tankers, 2 liquefied natural gas carriers, and 3 suezmax DP2 shuttle tankers. Tsakos Energy Navigation Limited has a strategic partnership with Statoil for the crude oil tanker newbuildings. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.
About Scorpio Tankers
Scorpio Tankers Inc. (Scorpio Tankers) is engaged in the seaborne transportation of refined petroleum products in the international shipping markets. The Company operates through four segments: Handymax, MR, LR1/Panamax and LR2. As of March 15, 2017, the Company’s fleet consisted of 78 owned tankers (22 LR2, 14 Handymax and 42 MR) with a weighted average age of approximately 2.3 years, and 19 time or bareboat chartered-in tankers, which it operated (one LR2, one LR1, eight MR and nine Handymax) (collectively referred to as its Operating Fleet). As of March 1, 2017, the Company’s total oil tanker fleet (crude, products and product/chemical tankers) consisted of 4,754 ships with a combined capacity of 525.9 million deadweight tonnage. As of December 31, 2016, the Company also had contracts for the construction of one LR2 tanker and eight MR tankers. Its vessels include STI Brixton, STI Comandante, STI Finchley, STI Hammersmith, STI Larvotto, STI San Antonio and STI Regina.
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