Analyzing Nordic American Tankers (NYSE:NAT) & Repsol (OTCMKTS:REPYY)

Nordic American Tankers (NYSE:NAT) and Repsol (OTCMKTS:REPYY) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Nordic American Tankers and Repsol, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordic American Tankers	1	2	1	0	2.00
Repsol	0	2	7	2	3.00

Nordic American Tankers presently has a consensus target price of $6.00, indicating a potential downside of 23.71%. Repsol has a consensus target price of $87.50, indicating a potential upside of 163.95%. Given Repsol’s stronger consensus rating and higher probable upside, analysts plainly believe Repsol is more favorable than Nordic American Tankers.

Dividends

Nordic American Tankers pays an annual dividend of $1.08 per share and has a dividend yield of 13.7%. Repsol pays an annual dividend of $0.99 per share and has a dividend yield of 3.0%. Nordic American Tankers pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Repsol pays out 39.0% of its earnings in the form of a dividend. Nordic American Tankers has raised its dividend for 1 consecutive years. Nordic American Tankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

44.3% of Nordic American Tankers shares are held by institutional investors. Comparatively, 0.3% of Repsol shares are held by institutional investors. 2.9% of Nordic American Tankers shares are held by insiders. Comparatively, 1.0% of Repsol shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Nordic American Tankers has a beta of -0.56, suggesting that its stock price is 156% less volatile than the S&P 500. Comparatively, Repsol has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Earnings and Valuation

This table compares Nordic American Tankers and Repsol”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordic American Tankers	$182.54 million	9.12	$12.27 million	$0.59	13.33
Repsol	$61.56 billion	0.60	$2.15 billion	$2.54	13.05

Repsol has higher revenue and earnings than Nordic American Tankers. Repsol is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nordic American Tankers and Repsol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nordic American Tankers	47.04%	20.58%	10.38%
Repsol	5.81%	9.96%	4.54%

About Nordic American Tankers

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.