StealthGas (NASDAQ: GASS) and Tsakos Energy Navigation (NYSE:TNP) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitabiliy, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Dividends

Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. StealthGas does not pay a dividend. Tsakos Energy Navigation pays out 51.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

62.7% of StealthGas shares are owned by institutional investors. Comparatively, 27.5% of Tsakos Energy Navigation shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares StealthGas and Tsakos Energy Navigation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
StealthGas $145.72 million 0.89 $53.43 million ($0.16) -20.31
Tsakos Energy Navigation $497.94 million 0.86 $195.68 million $0.39 13.10

Tsakos Energy Navigation has higher revenue and earnings than StealthGas. StealthGas is trading at a lower price-to-earnings ratio than Tsakos Energy Navigation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

StealthGas has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Tsakos Energy Navigation has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Profitability

This table compares StealthGas and Tsakos Energy Navigation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StealthGas -4.41% -0.09% -0.05%
Tsakos Energy Navigation 9.61% 3.40% 1.51%

Analyst Recommendations

This is a summary of recent recommendations for StealthGas and Tsakos Energy Navigation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StealthGas 0 1 1 0 2.50
Tsakos Energy Navigation 0 1 5 0 2.83

StealthGas currently has a consensus price target of $5.50, indicating a potential upside of 69.23%. Tsakos Energy Navigation has a consensus price target of $6.30, indicating a potential upside of 23.29%. Given StealthGas’ higher possible upside, research analysts plainly believe StealthGas is more favorable than Tsakos Energy Navigation.

Summary

Tsakos Energy Navigation beats StealthGas on 10 of the 15 factors compared between the two stocks.

StealthGas Company Profile

StealthGas Inc. is a provider of international seaborne transportation services to liquefied petroleum gas (LPG) producers and users, as well as crude oil and product carriers to oil producers, refineries and commodities traders. The Company owns a fleet of LPG carriers. Its LPG carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene and vinyl chloride monomer, which are all byproducts of the production of crude oil and natural gas. The medium range product carriers in its fleet are capable of carrying refined petroleum products, such as gasoline, diesel, fuel oil and jet fuel, as well as edible oils and chemicals, while its Aframax tanker is used for carrying crude oil. Its fleet consists of approximately 50 LPG carriers, including two chartered-in LPG carriers, two 2008-built product carriers, a 2009-built product carrier and a 2010-built Aframax crude oil tanker.

Tsakos Energy Navigation Company Profile

Tsakos Energy Navigation Limited is a provider of international seaborne crude oil and petroleum product transportation services. The Company operates through maritime transportation of liquid energy related products segment. It operates a fleet of approximately 50 modern crude oil and petroleum product tankers that provide marine transportation services for national and other independent oil companies and refiners under long, medium and short-term charters. Its fleet also includes a liquefied natural gas (LNG) carrier and over two shuttle suezmax tankers with dynamic positioning technology (DP2). This fleet diversity includes a range of sister ships. The operating fleet totals over 5.2 million deadweight tonnage (dwt), all of which is double-hulled. Its diversified fleet, which includes VLCC, suezmax, aframax, panamax, handysize, handymax tankers, LNG carrier and DP2 shuttle tankers, allows it to serve its customers’ international petroleum product and crude oil transportation needs.

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