Dorian LPG (NYSE: LPG) and Gener8 Maritime (NYSE:GNRT) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dorian LPG and Gener8 Maritime, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorian LPG 0 1 1 0 2.50
Gener8 Maritime 0 0 1 0 3.00

Dorian LPG currently has a consensus price target of $10.00, suggesting a potential upside of 28.21%. Gener8 Maritime has a consensus price target of $10.00, suggesting a potential upside of 114.13%. Given Gener8 Maritime’s stronger consensus rating and higher probable upside, analysts clearly believe Gener8 Maritime is more favorable than Dorian LPG.

Profitability

This table compares Dorian LPG and Gener8 Maritime’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorian LPG -7.30% -4.06% -2.28%
Gener8 Maritime -34.10% 1.16% 0.56%

Insider & Institutional Ownership

46.9% of Dorian LPG shares are owned by institutional investors. Comparatively, 76.1% of Gener8 Maritime shares are owned by institutional investors. 26.5% of Dorian LPG shares are owned by insiders. Comparatively, 13.7% of Gener8 Maritime shares are owned by 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.

Earnings & Valuation

This table compares Dorian LPG and Gener8 Maritime’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Dorian LPG $167.45 million 2.57 -$1.44 million ($0.21) -37.14
Gener8 Maritime $404.62 million 0.96 $67.30 million ($1.41) -3.31

Gener8 Maritime has higher revenue and earnings than Dorian LPG. Dorian LPG is trading at a lower price-to-earnings ratio than Gener8 Maritime, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dorian LPG has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Gener8 Maritime has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

Gener8 Maritime beats Dorian LPG on 8 of the 12 factors compared between the two stocks.

About Dorian LPG

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.

About Gener8 Maritime

Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.

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