Scorpio Tankers (NYSE:STNG) and EuroDry (NASDAQ:EDRY) Financial Analysis

Scorpio Tankers (NYSE:STNG) and EuroDry (NASDAQ:EDRY) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Scorpio Tankers and EuroDry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	0	3	6	1	2.80
EuroDry	1	1	1	0	2.00

Scorpio Tankers presently has a consensus target price of $93.50, suggesting a potential upside of 23.14%. EuroDry has a consensus target price of $23.50, suggesting a potential upside of 4.86%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Scorpio Tankers is more favorable than EuroDry.

Earnings and Valuation

This table compares Scorpio Tankers and EuroDry”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	4.08	$344.29 million	$10.17	7.47
EuroDry	$52.26 million	1.24	-$4.26 million	($0.13)	-172.38

Scorpio Tankers has higher revenue and earnings than EuroDry. EuroDry is trading at a lower price-to-earnings ratio than Scorpio Tankers, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Scorpio Tankers and EuroDry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	48.44%	11.72%	9.28%
EuroDry	-0.55%	-0.88%	-0.43%

Risk and Volatility

Scorpio Tankers has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, EuroDry has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

54.6% of Scorpio Tankers shares are held by institutional investors. Comparatively, 2.4% of EuroDry shares are held by institutional investors. 7.3% of Scorpio Tankers shares are held by insiders. Comparatively, 51.4% of EuroDry shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Scorpio Tankers beats EuroDry on 13 of the 15 factors compared between the two stocks.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.