Analyzing Teekay (NYSE:TK) and Performance Shipping (NASDAQ:PSHG)

Teekay (NYSE:TK) and Performance Shipping (NASDAQ:PSHG) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Teekay and Performance Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay	10.28%	9.07%	7.03%
Performance Shipping	63.28%	33.48%	21.75%

Valuation & Earnings

This table compares Teekay and Performance Shipping’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay	$1.46 billion	0.45	$150.64 million	$1.53	4.75
Performance Shipping	$108.94 million	0.24	$69.41 million	$1.91	1.13

Teekay has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Teekay, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Teekay has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Performance Shipping has a beta of -0.24, suggesting that its stock price is 124% less volatile than the S&P 500.

Insider & Institutional Ownership

46.7% of Teekay shares are held by institutional investors. Comparatively, 19.9% of Performance Shipping shares are held by institutional investors. 2.4% of Teekay shares are held by company insiders. Comparatively, 0.4% of Performance Shipping shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Teekay and Performance Shipping, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay	0	0	0	0	N/A
Performance Shipping	0	0	1	0	3.00

Summary

Teekay beats Performance Shipping on 7 of the 12 factors compared between the two stocks.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2022, its fleet consisted of eight Aframax tanker vessels with a combined carrying capacity of 851,825 DWT. The company was incorporated in 2010 and is based in Athens, Greece.