Pac BASIN SHIPP/ADR (NYSE: STNG) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Volatility & Risk
Pac BASIN SHIPP/ADR has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Valuation and Earnings
This table compares Pac BASIN SHIPP/ADR and Scorpio Tankers’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pac BASIN SHIPP/ADR||$1.49 billion||0.72||$3.61 million||$0.02||241.00|
|Scorpio Tankers||$512.73 million||1.24||-$158.24 million||($0.47)||-4.06|
Pac BASIN SHIPP/ADR has higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than Pac BASIN SHIPP/ADR, indicating that it is currently the more affordable of the two stocks.
Pac BASIN SHIPP/ADR pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. Scorpio Tankers pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. Pac BASIN SHIPP/ADR pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers pays out -8.5% of its earnings in the form of a dividend. Scorpio Tankers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
60.7% of Scorpio Tankers shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Pac BASIN SHIPP/ADR and Scorpio Tankers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pac BASIN SHIPP/ADR||0||0||0||0||N/A|
Scorpio Tankers has a consensus target price of $4.20, suggesting a potential upside of 119.90%. Given Scorpio Tankers’ higher probable upside, analysts clearly believe Scorpio Tankers is more favorable than Pac BASIN SHIPP/ADR.
This table compares Pac BASIN SHIPP/ADR and Scorpio Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pac BASIN SHIPP/ADR||N/A||N/A||N/A|
Pac BASIN SHIPP/ADR Company Profile
Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. The company has a fleet of 222 ships, including 139 Handysize vessels, 81 Supramax vessels, and 2 Post Panamax vessels. It also offers ship and ocean shipping services, shipping consulting and ship agency, crewing, secretarial, and agency and ship management services. Pacific Basin Shipping Limited was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.
Scorpio Tankers Company Profile
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products worldwide. As of March 22, 2018, its fleet consisted of 109 tankers, including 38 LR2, 12 LR1, 45 MR, and 14 Handymax tankers with an average age of approximately 2.6 years; and 20 time or bareboat chartered-in tankers, which include 2 LR2, 10 MR, and 8 Handymax tankers. The company was founded in 2009 and is based in Monaco.
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