Analyzing Tsakos Energy Navigation (NYSE:TEN) & Navigator (NYSE:NVGS)

Tsakos Energy Navigation (NYSE:TEN) and Navigator (NYSE:NVGS) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Volatility & Risk

Tsakos Energy Navigation has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Navigator has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tsakos Energy Navigation and Navigator”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tsakos Energy Navigation	$804.06 million	0.86	$176.23 million	$2.80	8.21
Navigator	$566.68 million	1.88	$85.57 million	$1.27	12.09

Tsakos Energy Navigation has higher revenue and earnings than Navigator. Tsakos Energy Navigation is trading at a lower price-to-earnings ratio than Navigator, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Tsakos Energy Navigation and Navigator, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tsakos Energy Navigation	0	3	1	0	2.25
Navigator	0	0	4	0	3.00

Tsakos Energy Navigation currently has a consensus price target of $31.00, indicating a potential upside of 34.92%. Navigator has a consensus price target of $22.33, indicating a potential upside of 45.41%. Given Navigator’s stronger consensus rating and higher possible upside, analysts clearly believe Navigator is more favorable than Tsakos Energy Navigation.

Dividends

Tsakos Energy Navigation pays an annual dividend of $1.20 per share and has a dividend yield of 5.2%. Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Tsakos Energy Navigation pays out 42.9% of its earnings in the form of a dividend. Navigator pays out 15.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Navigator has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

19.2% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 19.0% of Navigator shares are owned by institutional investors. 1.4% of Tsakos Energy Navigation shares are owned by insiders. Comparatively, 0.4% of Navigator shares are owned 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.

Profitability

This table compares Tsakos Energy Navigation and Navigator’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tsakos Energy Navigation	14.17%	12.03%	5.69%
Navigator	15.57%	6.56%	3.67%

Summary

Navigator beats Tsakos Energy Navigation on 9 of the 17 factors compared between the two stocks.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, Greece.

About Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.