International Seaways (NYSE: INSW) 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 analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings for International Seaways and Nordic American Tankers Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Seaways 0 0 1 0 3.00
Nordic American Tankers Limited 3 3 0 0 1.50

International Seaways currently has a consensus target price of $30.00, suggesting a potential upside of 48.81%. Nordic American Tankers Limited has a consensus target price of $6.30, suggesting a potential upside of 26.51%. Given International Seaways’ stronger consensus rating and higher probable upside, analysts plainly believe International Seaways is more favorable than Nordic American Tankers Limited.

Profitability

This table compares International Seaways and Nordic American Tankers Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Seaways -31.22% 0.91% 0.64%
Nordic American Tankers Limited 0.06% 0.25% 0.16%

Insider and Institutional Ownership

86.3% of International Seaways shares are held by institutional investors. Comparatively, 23.2% of Nordic American Tankers Limited shares are held by institutional investors. 0.5% of International Seaways shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Nordic American Tankers Limited pays an annual dividend of $0.40 per share and has a dividend yield of 8.0%. International Seaways does not pay a dividend. Nordic American Tankers Limited pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares International Seaways and Nordic American Tankers Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
International Seaways $327.29 million 1.80 $85.71 million ($3.50) -5.76
Nordic American Tankers Limited $313.36 million 1.62 $89.71 million $0.02 249.00

Nordic American Tankers Limited has higher revenue, but lower earnings than International Seaways. International Seaways 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.

Summary

International Seaways beats Nordic American Tankers Limited on 10 of the 14 factors compared between the two stocks.

International Seaways Company Profile

International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company’s oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company’s segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.

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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