Analyzing Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) & International Seaways (NYSE:INSW)

Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and International Seaways (NYSE:INSW) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Insider and Institutional Ownership

67.3% of International Seaways shares are held by institutional investors. 2.0% of International Seaways shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Nippon Yusen Kabushiki Kaisha and International Seaways, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00
International Seaways	0	2	2	0	2.50

International Seaways has a consensus target price of $52.67, suggesting a potential upside of 2.05%. Given International Seaways’ stronger consensus rating and higher probable upside, analysts clearly believe International Seaways is more favorable than Nippon Yusen Kabushiki Kaisha.

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.22 per share and has a dividend yield of 3.5%. International Seaways pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Nippon Yusen Kabushiki Kaisha pays out 22.9% of its earnings in the form of a dividend. International Seaways pays out 10.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and International Seaways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Yusen Kabushiki Kaisha	12.71%	10.11%	6.82%
International Seaways	29.88%	11.35%	8.27%

Earnings and Valuation

This table compares Nippon Yusen Kabushiki Kaisha and International Seaways”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha	$17.00 billion	0.81	$1.51 billion	$0.96	6.60
International Seaways	$770.04 million	3.31	$416.72 million	$4.39	11.76

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than International Seaways. Nippon Yusen Kabushiki Kaisha is trading at a lower price-to-earnings ratio than International Seaways, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Nippon Yusen Kabushiki Kaisha has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, International Seaways has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Summary

International Seaways beats Nippon Yusen Kabushiki Kaisha on 12 of the 16 factors compared between the two stocks.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About International Seaways

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.