Tsakos Energy Navigation (NYSE: TNP) and Scorpio Tankers (NYSE:STNG) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Valuation & Earnings
This table compares Tsakos Energy Navigation and Scorpio Tankers’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tsakos Energy Navigation||$481.79 million||0.60||$55.78 million||$0.20||16.90|
|Scorpio Tankers||$512.73 million||1.43||-$158.24 million||($0.75)||-3.15|
Tsakos Energy Navigation has higher earnings, but lower revenue 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.
Volatility & Risk
Tsakos Energy Navigation has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
This is a summary of recent ratings for Tsakos Energy Navigation and Scorpio Tankers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tsakos Energy Navigation||0||2||5||0||2.71|
Tsakos Energy Navigation presently has a consensus price target of $5.14, suggesting a potential upside of 52.16%. Scorpio Tankers has a consensus price target of $5.69, suggesting a potential upside of 141.00%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Scorpio Tankers is more favorable than Tsakos Energy Navigation.
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||5.64%||2.02%||0.88%|
Insider and Institutional Ownership
26.1% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 66.8% of Scorpio Tankers shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 5.9%. Scorpio Tankers pays an annual dividend of $0.04 per share and has a dividend yield of 1.7%. Tsakos Energy Navigation pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers pays out -5.3% 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.
Tsakos Energy Navigation Company Profile
Tsakos Energy Navigation Ltd is a provider of international seaborne crude oil and petroleum product transportation services. The Company operates through maritime transportation of liquid energy related products segment. The Company consists of 65 double-hull vessels, constituting a mix of crude tankers, product tankers and liquefied natural gas (LNG) carriers, totaling 7.2 million deadweight. Of these, 47 vessels trade in crude, 13 in products, three are shuttle tankers and two are LNG carriers. Its diversified fleet, which includes VLCC, aframax, panamax, handysize, handymax tankers, LNG carrier and DP2 shuttle tankers, allows it to serve its customers’ international petroleum product and crude oil transportation needs.
Scorpio Tankers Company Profile
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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