Reviewing Dorian LPG (LPG) and Nordic American Tankers Limited (NAT)
Dorian LPG (NYSE: LPG) and Nordic American Tankers Limited (NYSE:NAT) 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, analyst recommendations, valuation, institutional ownership, earnings, profitabiliy and dividends.
This table compares Dorian LPG and Nordic American Tankers Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nordic American Tankers Limited||0.06%||0.25%||0.16%|
This is a summary of current recommendations and price targets for Dorian LPG and Nordic American Tankers Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nordic American Tankers Limited||3||4||0||0||1.57|
Dorian LPG presently has a consensus target price of $10.00, indicating a potential upside of 41.84%. Nordic American Tankers Limited has a consensus target price of $7.08, indicating a potential upside of 24.05%. Given Dorian LPG’s stronger consensus rating and higher probable upside, analysts plainly believe Dorian LPG is more favorable than Nordic American Tankers Limited.
Institutional & Insider Ownership
47.9% of Dorian LPG shares are held by institutional investors. Comparatively, 27.0% of Nordic American Tankers Limited shares are held by institutional investors. 26.5% of Dorian LPG shares are held by company 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.
Nordic American Tankers Limited pays an annual dividend of $0.80 per share and has a dividend yield of 14.0%. Dorian LPG does not pay a dividend. Nordic American Tankers Limited pays out 4,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Dorian LPG has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Nordic American Tankers Limited has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
Valuation and Earnings
This table compares Dorian LPG and Nordic American Tankers Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorian LPG||$157.40 million||2.47||$66.09 million||($0.12)||-58.75|
|Nordic American Tankers Limited||$335.91 million||1.73||$113.60 million||$0.02||285.50|
Nordic American Tankers Limited has higher revenue and earnings than Dorian LPG. Dorian LPG is trading at a lower price-to-earnings ratio than Nordic American Tankers Limited, indicating that it is currently the more affordable of the two stocks.
Dorian LPG beats Nordic American Tankers Limited on 8 of the 15 factors compared between the two stocks.
Dorian LPG Company Profile
Dorian LPG Ltd. is a holding company. The Company, through its subsidiaries, is focused on owning and operating very large gas carrier (VLGCs) in the liquefied petroleum gas (LPG) shipping industry. The Company is engaged in the transportation of LPG across the world through its ownership and operation of LPG tankers. As of March 31, 2016, the Company owned and operated a fleet of 22 VLGCs, including 19 84,000 cubic meter (cbm) ECO-design VLGCs (ECO VLGCs) and three 82,000 cbm VLGCs. The VLGCs in its fleet had an aggregate carrying capacity of approximately 1.8 million cbm at May 26, 2016. It provides in-house commercial and technical management services for all of its vessels. As of May 26, 2016, its VLGCs included Captain Nicholas ML; Captain John NP; Comet; Corsair; Corvette; Cougar; Concorde; Cobra; Continental; Commodore; Constellation; Cheyenne; Cratis; Chaparral; Commander, and Challenger. The Company’s customers include global energy companies, commodity traders and importers.
Nordic American Tankers Limited Company Profile
Nordic American Tankers Limited is an international tanker company. The Company owns approximately 26 vessels, including approximately two new buildings under construction, of approximately 156,000 deadweight tonnage (dwt) each. The Company’s Suezmaxes tankers can carry over one million barrels of oil. The vessels in the Company’s fleet are homogenous and interchangeable. The Company’s vessels are employed in the spot market. The Company’s vessels include Nordic Harrier, Nordic Hawk, Nordic Hunter, Nordic Voyager, Nordic Fighter, Nordic Freedom, Nordic Discovery, Nordic Saturn, Nordic Jupiter, Nordic Moon, Nordic Apollo, Nordic Cosmos, Nordic Sprite, Nordic Mistral, Nordic Passat, Nordic Vega, Nordic Breeze, Nordic Zenith, Nordic Sprinter, Nordic Skier and Nordic Light.
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