Hafnia (NYSE:HAFN) & Despegar.com (NYSE:DESP) Critical Comparison

Hafnia (NYSE:HAFN) and Despegar.com (NYSE:DESP) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Earnings & Valuation

This table compares Hafnia and Despegar.com”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$3.04 billion	0.99	$793.28 million	$1.70	3.49
Despegar.com	$720.99 million	1.76	$24.49 million	N/A	N/A

Hafnia has higher revenue and earnings than Despegar.com.

Profitability

This table compares Hafnia and Despegar.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	53.44%	36.90%	22.38%
Despegar.com	4.45%	-58.97%	6.70%

Institutional and Insider Ownership

67.9% of Despegar.com shares are held by institutional investors. 1.2% of Despegar.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hafnia and Despegar.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	2	0	3.00
Despegar.com	0	2	3	0	2.60

Hafnia presently has a consensus target price of $8.25, indicating a potential upside of 38.89%. Despegar.com has a consensus target price of $17.20, indicating a potential downside of 10.28%. Given Hafnia’s stronger consensus rating and higher probable upside, research analysts plainly believe Hafnia is more favorable than Despegar.com.

Summary

Hafnia beats Despegar.com on 7 of the 11 factors compared between the two stocks.

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.

About Despegar.com

Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products to leisure and corporate travelers through its websites and mobile applications in Latin America and the United States. The company operates in two segments, Travel Business and Financial Services Business. It sells airline tickets, travel packages, hotel rooms, car rentals, bus and cruise tickets, travel insurance, destination services, and other travel-related products, which enable consumers to find, compare, plan, and purchase travel products through its marketplace. The company also provides a technology platform for its travel suppliers to manage the distribution of their travel products and access to traveler customers. In addition, it offers loan origination services to its travel business' customers and to customers of other merchants in various industries; processing, fraud identification, credit scoring and IT services to travel business, and to third-party merchants; and Koin, an online payment and consumer lending services platform. The company offers travel products and services under the Despegar, Decolar, Best Day, BD Experience, and HotelDo brands. Despegar.com, Corp. was founded in 1999 and is based in Buenos Aires, Argentina.