Comparing Scorpio Tankers (NYSE:STNG) and Keppel (OTCMKTS:KPELY)

Keppel (OTCMKTS:KPELY) and Scorpio Tankers (NYSE:STNG) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Risk & Volatility

Keppel has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Earnings & Valuation

This table compares Keppel and Scorpio Tankers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel	$4.58 billion	3.39	$603.62 million	N/A	N/A
Scorpio Tankers	$938.22 million	4.56	$344.29 million	$7.07	11.68

Keppel has higher revenue and earnings than Scorpio Tankers.

Insider & Institutional Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Keppel and Scorpio Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel	N/A	N/A	N/A
Scorpio Tankers	36.70%	8.85%	6.78%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Keppel and Scorpio Tankers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel	0	0	1	0	3.00
Scorpio Tankers	1	4	5	0	2.40

Scorpio Tankers has a consensus target price of $88.50, suggesting a potential upside of 7.17%. Given Scorpio Tankers’ higher possible upside, analysts plainly believe Scorpio Tankers is more favorable than Keppel.

Dividends

Keppel pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Scorpio Tankers pays out 25.5% of its earnings in the form of a dividend. Scorpio Tankers has raised its dividend for 2 consecutive years.

Summary

Scorpio Tankers beats Keppel on 9 of the 15 factors compared between the two stocks.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.