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

Earnings & Valuation

This table compares Seaspan Corporation and Tsakos Energy Navigation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seaspan Corporation $844.00 million 0.98 $501.00 million ($1.67) -4.19
Tsakos Energy Navigation $510.27 million 0.74 $201.85 million $0.21 21.38

Seaspan Corporation has higher revenue and earnings than Tsakos Energy Navigation. Seaspan Corporation 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.

Risk & Volatility

Seaspan Corporation has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Tsakos Energy Navigation has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Seaspan Corporation and Tsakos Energy Navigation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seaspan Corporation 3 5 0 0 1.63
Tsakos Energy Navigation 0 2 7 0 2.78

Seaspan Corporation presently has a consensus target price of $6.79, suggesting a potential downside of 3.06%. Tsakos Energy Navigation has a consensus target price of $5.75, suggesting a potential upside of 28.06%. Given Tsakos Energy Navigation’s stronger consensus rating and higher possible upside, analysts plainly believe Tsakos Energy Navigation is more favorable than Seaspan Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Seaspan Corporation -13.54% 7.51% 2.36%
Tsakos Energy Navigation 6.86% 2.39% 1.04%

Institutional and Insider Ownership

15.3% of Seaspan Corporation shares are owned by institutional investors. Comparatively, 25.8% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Seaspan Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 7.1%. Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Seaspan Corporation pays out -29.9% of its earnings in the form of a dividend. Tsakos Energy Navigation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tsakos Energy Navigation has raised its dividend for 5 consecutive years. Seaspan Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Tsakos Energy Navigation beats Seaspan Corporation on 9 of the 16 factors compared between the two stocks.

About Seaspan Corporation

Seaspan Corporation is an independent charter owner and manager of containerships. The Company charters pursuant to long-term, fixed-rate time charters with various container liner companies. As of February 20, 2017, it had operated a fleet of 88 containerships and had entered into contracts for the purchase of an additional eight new building containerships. Its operating vessels include YM Wish, YM Wellhead, YM Witness, COSCO Glory, COSCO Development, COSCO Harmony, COSCO Excellence, COSCO Hope, COSCO Fortune, Seaspan Yangtze, CSCL Zeebrugge, CSCL Long Beach, CSCL Oceania, COSCO Vietnam, MOL Emissary, Seaspan Chiwan, Seaspan Ningbo, Seaspan Felixstowe, CSCL Brisbane, Seaspan Santos, Seaspan Loncomilla, Seaspan Lingue, CSCL Montevideo, CSCL Callao, Guayaquil Bridge and Calicanto Bridge. The Company is engaged in the operation and management of vessel, including maintaining the vessel, periodic dry-docking, cleaning and painting and performing work required by regulations.

About Tsakos Energy Navigation

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‚Äôs 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.

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