Contrasting SFL (NYSE:SFL) and Keppel (OTCMKTS:KPELY)

Keppel (OTCMKTS:KPELY) and SFL (NYSE:SFL) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Keppel and SFL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel	0	0	1	0	3.00
SFL	1	0	1	0	2.00

SFL has a consensus price target of $11.00, indicating a potential upside of 44.83%. Given SFL’s higher probable upside, analysts plainly believe SFL is more favorable than Keppel.

Earnings & Valuation

This table compares Keppel and SFL”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel	$4.94 billion	2.85	$712.27 million	N/A	N/A
SFL	$904.40 million	1.22	$130.65 million	($0.01)	-759.50

Keppel has higher revenue and earnings than SFL.

Dividends

Keppel pays an annual dividend of $0.46 per share and has a dividend yield of 2.9%. SFL pays an annual dividend of $0.80 per share and has a dividend yield of 10.5%. SFL pays out -8,000.0% of its earnings in the form of a dividend. SFL has increased its dividend for 1 consecutive years. SFL is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Keppel has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, SFL has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares Keppel and SFL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel	N/A	N/A	N/A
SFL	-0.20%	3.05%	0.80%

Institutional and Insider Ownership

28.6% of SFL shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

SFL beats Keppel on 7 of the 12 factors compared between the two stocks.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.

About SFL

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.