Head to Head Review: Teekay Tankers (NYSE:TNK) vs. Toro (NASDAQ:TORO)

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

Analyst Ratings

This is a summary of current ratings and price targets for Toro and Teekay Tankers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	1	0	0	0	1.00
Teekay Tankers	0	2	3	2	3.00

Teekay Tankers has a consensus price target of $77.00, suggesting a potential upside of 9.46%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Teekay Tankers is more favorable than Toro.

Valuation and Earnings

This table compares Toro and Teekay Tankers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$22.39 million	3.66	$25.21 million	$0.04	95.50
Teekay Tankers	$951.80 million	2.55	$351.19 million	$10.09	6.97

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

Volatility and Risk

Toro has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500.

Institutional and Insider Ownership

1.7% of Toro shares are held by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company 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 Toro and Teekay Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	26.12%	2.61%	1.58%
Teekay Tankers	36.90%	12.60%	11.41%

Summary

Teekay Tankers beats Toro on 12 of the 15 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 Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.