Hafnia (HAFN) vs. Its Rivals Critical Analysis

Hafnia (NYSE:HAFN) is one of 38 publicly-traded companies in the “Transportation services” industry, but how does it contrast to its competitors? We will compare Hafnia to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

64.2% of shares of all “Transportation services” companies are owned by institutional investors. 10.9% of shares of all “Transportation services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Hafnia pays an annual dividend of $1.62 per share and has a dividend yield of 31.0%. Hafnia pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Transportation services” companies pay a dividend yield of 0.8% and pay out 24.6% of their earnings in the form of a dividend.

Profitability

This table compares Hafnia and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	47.30%	34.28%	20.51%
Hafnia Competitors	-1,912.14%	-1,221.20%	-6.70%

Analyst Recommendations

This is a breakdown of recent ratings for Hafnia and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	1	0	3.00
Hafnia Competitors	137	1103	2093	38	2.60

Hafnia currently has a consensus price target of $10.00, indicating a potential upside of 91.20%. As a group, “Transportation services” companies have a potential downside of 4.01%. Given Hafnia’s stronger consensus rating and higher probable upside, research analysts clearly believe Hafnia is more favorable than its competitors.

Earnings and Valuation

This table compares Hafnia and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hafnia	$1.92 billion	$793.28 million	3.33
Hafnia Competitors	$3.77 billion	$293.71 million	-5,035.54

Hafnia’s competitors have higher revenue, but lower earnings than Hafnia. Hafnia is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Hafnia beats its competitors on 9 of the 14 factors compared.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.