Ardmore Shipping (NYSE:ASC) vs. Euronav (NYSE:EURN) Critical Survey

Ardmore Shipping (NYSE:ASC) and Euronav (NYSE:EURN) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ardmore Shipping and Euronav, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardmore Shipping 0 1 1 0 2.50
Euronav 0 1 4 0 2.80

Ardmore Shipping currently has a consensus price target of $8.00, indicating a potential downside of 8.26%. Euronav has a consensus price target of $12.33, indicating a potential upside of 8.86%. Given Euronav’s stronger consensus rating and higher possible upside, analysts clearly believe Euronav is more favorable than Ardmore Shipping.

Risk and Volatility

Ardmore Shipping has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Euronav has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Insider and Institutional Ownership

86.5% of Ardmore Shipping shares are owned by institutional investors. Comparatively, 29.4% of Euronav shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ardmore Shipping and Euronav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardmore Shipping -21.50% -7.82% -3.29%
Euronav -9.69% -2.89% -1.57%

Earnings and Valuation

This table compares Ardmore Shipping and Euronav’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardmore Shipping $210.18 million 1.37 -$42.94 million ($1.04) -8.38
Euronav $600.02 million 4.15 -$110.07 million ($0.65) -17.43

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

Summary

Euronav beats Ardmore Shipping on 9 of the 13 factors compared between the two stocks.

About Ardmore Shipping

Ardmore Shipping Corporation, together with its subsidiaries, engages in the seaborne transportation of petroleum products and chemicals worldwide. As of January 31, 2019, the company operated a fleet of 27 double-hulled product and chemical tankers, including 21 Eco-design and 6 Eco-mod vessels. It serves oil majors, oil companies, oil and chemical traders, and chemical companies. The company was founded in 2010 and is based in Pembroke, Bermuda.

About Euronav

Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil and petroleum products worldwide. The company operates through two segments, Tankers; and Floating Production, Storage, and Offloading Operations. As of December 12, 2018, it owned and operated a fleet of vessels, including 43 very large crude carriers, 2 ULCCs, 26 Suezmax vessels, and 2 floating, storage, and offloading vessels, as well as 1 LR1s. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium.

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