Eagle Bulk Shipping (NASDAQ: EGLE) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Institutional & Insider Ownership
42.3% of Eagle Bulk Shipping shares are held by institutional investors. Comparatively, 57.0% of Scorpio Tankers shares are held by institutional investors. 3.7% of Eagle Bulk Shipping shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Eagle Bulk Shipping and Scorpio Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Bulk Shipping||-12.09%||-3.76%||-2.18%|
Volatility and Risk
Eagle Bulk Shipping has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Scorpio Tankers pays an annual dividend of $0.04 per share and has a dividend yield of 1.4%. Eagle Bulk Shipping does not pay a dividend. Scorpio Tankers pays out -8.5% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for Eagle Bulk Shipping and Scorpio Tankers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Bulk Shipping||0||2||4||0||2.67|
Eagle Bulk Shipping currently has a consensus price target of $6.60, suggesting a potential upside of 10.00%. Scorpio Tankers has a consensus price target of $4.21, suggesting a potential upside of 42.66%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts plainly believe Scorpio Tankers is more favorable than Eagle Bulk Shipping.
Valuation and Earnings
This table compares Eagle Bulk Shipping and Scorpio Tankers’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eagle Bulk Shipping||$236.79 million||1.85||-$43.79 million||($0.42)||-14.29|
|Scorpio Tankers||$512.73 million||1.91||-$158.24 million||($0.47)||-6.28|
Eagle Bulk Shipping has higher earnings, but lower revenue than Scorpio Tankers. Eagle Bulk Shipping is trading at a lower price-to-earnings ratio than Scorpio Tankers, indicating that it is currently the more affordable of the two stocks.
Scorpio Tankers beats Eagle Bulk Shipping on 9 of the 16 factors compared between the two stocks.
Eagle Bulk Shipping Company Profile
Eagle Bulk Shipping Inc. is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. The Company operates in the Handymax sector of the dry bulk industry, with particular emphasis on the Supramax class of vessels. The Company owns Supramax dry bulk vessel. Supramax dry bulk vessels range in size from 50,000 to 60,000 deadweight tons. These vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of Panamax dry bulk vessels, which range in size from 60,000 to 100,000 deadweight tons and must rely on port facilities to load and offload their cargoes. On July 26, 2011 the Company sold its the Heron, a Supramax class of vessel.
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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