Tsakos Energy Navigation (NYSE: TNP) and Scorpio Bulkers (NYSE:SALT) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Tsakos Energy Navigation 9.61% 3.40% 1.51%
Scorpio Bulkers -72.87% -7.52% -4.58%

Institutional & Insider Ownership

26.0% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 44.0% of Scorpio Bulkers shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Scorpio Bulkers does not pay a dividend. Tsakos Energy Navigation pays out 51.3% of its earnings in the form of a dividend.

Volatility & Risk

Tsakos Energy Navigation has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Scorpio Bulkers has a beta of 3.65, indicating that its share price is 265% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tsakos Energy Navigation $497.94 million 0.75 $195.68 million $0.39 11.46
Scorpio Bulkers $123.25 million 4.54 $610,000.00 ($1.26) -6.19

Tsakos Energy Navigation has higher revenue and earnings than Scorpio Bulkers. Scorpio Bulkers 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.

Analyst Ratings

This is a breakdown of current recommendations for Tsakos Energy Navigation and Scorpio Bulkers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tsakos Energy Navigation 0 2 5 0 2.71
Scorpio Bulkers 0 2 4 0 2.67

Tsakos Energy Navigation currently has a consensus target price of $5.75, suggesting a potential upside of 28.64%. Scorpio Bulkers has a consensus target price of $9.54, suggesting a potential upside of 22.33%. Given Tsakos Energy Navigation’s stronger consensus rating and higher possible upside, research analysts plainly believe Tsakos Energy Navigation is more favorable than Scorpio Bulkers.

Summary

Tsakos Energy Navigation beats Scorpio Bulkers on 11 of the 15 factors compared between the two stocks.

Tsakos Energy Navigation Company Profile

Tsakos Energy Navigation Ltd 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 57 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 Company’s fleet consists of 65 double-hull vessels totaling 7.2 million deadweight tonnage. 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.

Scorpio Bulkers Company Profile

Scorpio Bulkers Inc. is a shipping company. The Company owns and operates newbuilding drybulk carriers with fuel-efficient specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). The Company operates through two segments: Kamsarmax and Ultramax. Its Kamsarmax segment includes vessels ranging from approximately 77,500 DWT to 98,700 DWT. Its Ultramax segment includes vessels ranging from approximately 60,200 DWT to 64,000 DWT. All of its owned vessels have carrying capacities of greater than 60,000 dwt. Its vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. As of December 31, 2016, its operating fleet of 48 vessels consisted of 47 drybulk vessels and one chartered-in drybulk vessel. It also has a contract for the construction of one newbuilding drybulk vessel.

Receive News & Ratings for Tsakos Energy Navigation Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tsakos Energy Navigation Ltd and related companies with MarketBeat.com's FREE daily email newsletter.