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

Institutional and Insider Ownership

26.1% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 77.3% of Ardmore Shipping 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Tsakos Energy Navigation 5.64% 2.02% 0.88%
Ardmore Shipping -6.45% -3.08% -1.41%

Valuation & Earnings

This table compares Tsakos Energy Navigation and Ardmore Shipping’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tsakos Energy Navigation $481.79 million 0.75 $55.78 million $0.11 38.73
Ardmore Shipping $164.40 million 1.62 $3.74 million ($0.37) -21.49

Tsakos Energy Navigation has higher revenue and earnings than Ardmore Shipping. Ardmore Shipping 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.

Dividends

Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.7%. Ardmore Shipping does not pay a dividend. Tsakos Energy Navigation pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ardmore Shipping has raised its dividend for 3 consecutive years.

Volatility and Risk

Tsakos Energy Navigation has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Ardmore Shipping has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Tsakos Energy Navigation and Ardmore Shipping, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tsakos Energy Navigation 0 2 6 0 2.75
Ardmore Shipping 0 1 3 0 2.75

Tsakos Energy Navigation currently has a consensus target price of $5.50, suggesting a potential upside of 29.11%. Ardmore Shipping has a consensus target price of $10.13, suggesting a potential upside of 27.36%. Given Tsakos Energy Navigation’s higher possible upside, equities research analysts clearly believe Tsakos Energy Navigation is more favorable than Ardmore Shipping.

Summary

Tsakos Energy Navigation beats Ardmore Shipping 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.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.

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