Reviewing DHT (NYSE:DHT) & Keppel (OTCMKTS:KPELY)

DHT (NYSE:DHT) and Keppel (OTCMKTS:KPELY) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares DHT and Keppel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$571.77 million	4.02	$181.38 million	$1.24	11.55
Keppel	$4.94 billion	3.15	$712.27 million	N/A	N/A

Keppel has higher revenue and earnings than DHT.

Risk and Volatility

DHT has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Keppel has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares DHT and Keppel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHT	41.17%	17.05%	12.67%
Keppel	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for DHT and Keppel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	1	4	0	2.80
Keppel	0	0	1	0	3.00

DHT currently has a consensus price target of $15.67, indicating a potential upside of 9.37%. Given DHT’s higher possible upside, equities analysts plainly believe DHT is more favorable than Keppel.

Insider and Institutional Ownership

58.5% of DHT shares are held by institutional investors. 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.

Dividends

DHT pays an annual dividend of $0.72 per share and has a dividend yield of 5.0%. Keppel pays an annual dividend of $0.46 per share and has a dividend yield of 2.7%. DHT pays out 58.1% of its earnings in the form of a dividend.

Summary

DHT beats Keppel on 8 of the 13 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.