Tsakos Energy Navigation (NYSE: TNP) and Star Bulk Carriers Corp. (NASDAQ:SBLK) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
This is a summary of current ratings and target prices for Tsakos Energy Navigation and Star Bulk Carriers Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tsakos Energy Navigation||0||2||7||0||2.78|
|Star Bulk Carriers Corp.||0||1||6||0||2.86|
Tsakos Energy Navigation presently has a consensus price target of $5.75, suggesting a potential upside of 28.06%. Star Bulk Carriers Corp. has a consensus price target of $13.20, suggesting a potential upside of 30.69%. Given Star Bulk Carriers Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Star Bulk Carriers Corp. is more favorable than Tsakos Energy Navigation.
This table compares Tsakos Energy Navigation and Star Bulk Carriers Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tsakos Energy Navigation||6.86%||2.39%||1.04%|
|Star Bulk Carriers Corp.||-36.90%||-5.54%||-2.83%|
Valuation and Earnings
This table compares Tsakos Energy Navigation and Star Bulk Carriers Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Tsakos Energy Navigation||$481.79 million||0.79||$55.78 million||$0.21||21.38|
|Star Bulk Carriers Corp.||$222.11 million||2.92||-$154.22 million||($1.86)||-5.43|
Tsakos Energy Navigation has higher revenue and earnings than Star Bulk Carriers Corp.. Star Bulk Carriers Corp. 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.
Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.5%. Star Bulk Carriers Corp. does not pay a dividend. Tsakos Energy Navigation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Tsakos Energy Navigation has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Star Bulk Carriers Corp. has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500.
Institutional & Insider Ownership
25.8% of Tsakos Energy Navigation shares are held by institutional investors. Comparatively, 74.0% of Star Bulk Carriers Corp. shares are held by institutional investors. 1.0% of Tsakos Energy Navigation 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.
Tsakos Energy Navigation beats Star Bulk Carriers Corp. on 9 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.
Star Bulk Carriers Corp. Company Profile
Star Bulk Carriers Corp. is an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. As of December 31, 2016, the Company’s fleet included 73 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 and 209,537 deadweight tonnage (dwt). The Company’s vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes across the world. The Company’s fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company’s Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia, and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia.
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