Gener8 Maritime (NASDAQ: GNRT) and Scorpio Tankers (NASDAQ:STNG) are both small-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitabiliy, analyst recommendations and valuation.

Profitability

This table compares Gener8 Maritime and Scorpio Tankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gener8 Maritime 21.84% 7.42% 3.56%
Scorpio Tankers -9.39% -3.53% -1.41%

Valuation and Earnings

This table compares Gener8 Maritime and Scorpio Tankers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gener8 Maritime $403.59 million 1.18 $244.78 million N/A N/A
Scorpio Tankers $480.42 million 1.32 $144.97 million N/A N/A

Gener8 Maritime has higher revenue, but lower earnings than Scorpio Tankers.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Gener8 Maritime and Scorpio Tankers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gener8 Maritime 0 1 2 0 2.67
Scorpio Tankers 0 1 10 0 2.91

Gener8 Maritime currently has a consensus target price of $8.00, indicating a potential upside of 39.62%. Scorpio Tankers has a consensus target price of $6.50, indicating a potential upside of 66.67%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts clearly believe Scorpio Tankers is more favorable than Gener8 Maritime.

Summary

Scorpio Tankers beats Gener8 Maritime on 5 of the 9 factors compared between the two stocks.

Gener8 Maritime Company Profile

Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.

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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