Reviewing Scorpio Tankers (STNG) & Its Competitors

Scorpio Tankers (NYSE:STNG) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its rivals? We will compare Scorpio Tankers to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	77.07%	17.06%	13.90%
Scorpio Tankers Competitors	-472.90%	19.17%	6.33%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Scorpio Tankers and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	1	5	5	0	2.36
Scorpio Tankers Competitors	5961	26926	40745	2403	2.52

Scorpio Tankers currently has a consensus target price of $105.33, suggesting a potential upside of 13.91%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.91%. Given Scorpio Tankers’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Scorpio Tankers has less favorable growth aspects than its rivals.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 1.9%. Scorpio Tankers pays out 9.5% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.5% and pay out -120.0% of their earnings in the form of a dividend. Scorpio Tankers has increased its dividend for 2 consecutive years. Scorpio Tankers lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Scorpio Tankers has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Scorpio Tankers’ rivals have a beta of -3.71, indicating that their average share price is 471% less volatile than the S&P 500.

Institutional and Insider Ownership

54.6% of Scorpio Tankers shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 7.3% of Scorpio Tankers shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Scorpio Tankers and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	$344.29 million	4.90
Scorpio Tankers Competitors	$10.76 billion	$5.51 billion	0.52

Scorpio Tankers’ rivals have higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Scorpio Tankers rivals beat Scorpio Tankers on 10 of the 15 factors compared.

Scorpio Tankers Company Profile

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.