Contrasting Kirby (KEX) & Nordic American Tanker (NAT)

Kirby (NYSE: KEX) and Nordic American Tanker (NYSE:NAT) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation & Earnings

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This table compares Kirby and Nordic American Tanker’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kirby $2.21 billion 2.36 $313.18 million $2.05 42.71
Nordic American Tanker $154.68 million 1.99 -$75.50 million ($0.71) -3.06



Kirby has higher revenue and earnings than Nordic American Tanker. Nordic American Tanker is trading at a lower price-to-earnings ratio than Kirby, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.0% of Kirby shares are owned by institutional investors. Comparatively, 28.7% of Nordic American Tanker shares are owned by institutional investors. 2.4% of Kirby shares are owned 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.

Profitability

This table compares Kirby and Nordic American Tanker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kirby 14.14% 4.17% 2.41%
Nordic American Tanker -48.82% -9.01% -5.72%

Volatility and Risk

Kirby has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Nordic American Tanker has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Kirby and Nordic American Tanker, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kirby 1 3 6 0 2.50
Nordic American Tanker 2 4 1 0 1.86

Kirby currently has a consensus target price of $81.11, suggesting a potential downside of 7.35%. Nordic American Tanker has a consensus target price of $2.75, suggesting a potential upside of 26.73%. Given Nordic American Tanker’s higher possible upside, analysts plainly believe Nordic American Tanker is more favorable than Kirby.

Dividends

Nordic American Tanker pays an annual dividend of $0.12 per share and has a dividend yield of 5.5%. Kirby does not pay a dividend. Nordic American Tanker pays out -16.9% of its earnings in the form of a dividend.

Summary

Kirby beats Nordic American Tanker on 12 of the 15 factors compared between the two stocks.

Kirby Company Profile

Kirby Corporation operates domestic tank barges in the United States. It operates in two segments, Marine Transportation and Distribution and Services. The Marine Transportation segment provides marine transportation services and towing vessels transporting bulk liquid products, as well as operates tank barges throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along three United States coasts, and in Alaska and Hawaii. This segment also transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barges; and operates offshore dry-bulk barge and tugboat units that are engaged in the offshore transportation of dry-bulk cargoes in the United States coastal trade. It serves oil refining and petrochemical companies. As of February 23, 2018, this segment owned or operated 998 inland tank barges with 22.0 million barrels of capacity, 302 inland towboats, 56 coastal tank barges with 5.4 million barrels of capacity, 53 coastal tugboats, 5 offshore dry-bulk cargo barges, 5 offshore tugboats, and 1 docking tugboat. The Distribution and Services segment sells replacement parts; provides service mechanics to overhaul and repair medium-speed and high-speed diesel engines, transmissions, reduction gears, and related oilfield services equipment; rebuilds component parts or diesel engines, transmissions, reduction gears, and related equipment used in oilfield services, marine, mining, power generation, on-highway, and other industrial applications; rents generators, fork lifts, and pumps and compressors; and manufactures and remanufactures pressure pumping units. It serves oilfield service, on-highway transportation, marine transportation, construction, and power generation companies, and the United States government. The company was formerly known as Kirby Exploration Company, Inc. and changed its name to Kirby Corporation in 1990. Kirby Corporation was founded in 1921 and is headquartered in Houston, Texas.

Nordic American Tanker Company Profile

Nordic American Tankers Limited, a tanker company, engages in acquiring and chartering double-hull tankers worldwide. It operates a fleet of 33 Suezmax crude oil tankers. The company was founded in 1995 and is based in Hamilton, Bermuda.

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