Comparing EuroDry (NASDAQ:EDRY) & Toro (NASDAQ:TORO)

Toro (NASDAQ:TORO) and EuroDry (NASDAQ:EDRY) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

Toro has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, EuroDry has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

1.7% of Toro shares are held by institutional investors. Comparatively, 2.4% of EuroDry shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Toro and EuroDry”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$20.14 million	3.57	$25.21 million	$0.02	188.25
EuroDry	$61.08 million	N/A	-$12.61 million	($5.20)	-2.57

Toro has higher earnings, but lower revenue than EuroDry. EuroDry is trading at a lower price-to-earnings ratio than Toro, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Toro and EuroDry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	24.65%	2.46%	1.49%
EuroDry	-28.64%	-12.65%	-6.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for Toro and EuroDry, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	1	0	0	0	1.00
EuroDry	1	2	0	0	1.67

Summary

Toro beats EuroDry on 7 of the 10 factors compared between the two stocks.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.