Financial Analysis: Cadeler A/S (NYSE:CDLR) and Teekay Tankers (NYSE:TNK)

Teekay Tankers (NYSE:TNK) and Cadeler A/S (NYSE:CDLR) are both mid-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

52.7% of Teekay Tankers shares are owned by institutional investors. Comparatively, 53.0% of Cadeler A/S shares are owned by institutional investors. 1.9% of Teekay Tankers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Teekay Tankers and Cadeler A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	2	3	2	2.75
Cadeler A/S	0	3	0	0	2.00

Teekay Tankers currently has a consensus target price of $77.00, suggesting a potential upside of 4.12%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, research analysts clearly believe Teekay Tankers is more favorable than Cadeler A/S.

Profitability

This table compares Teekay Tankers and Cadeler A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	42.60%	16.34%	14.87%
Cadeler A/S	39.61%	18.00%	8.46%

Volatility and Risk

Teekay Tankers has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500. Comparatively, Cadeler A/S has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares Teekay Tankers and Cadeler A/S”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	2.68	$351.19 million	$12.30	6.01
Cadeler A/S	$701.71 million	3.09	$317.00 million	$3.47	6.48

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

Summary

Teekay Tankers beats Cadeler A/S on 10 of the 15 factors compared between the two stocks.

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.

About Cadeler A/S

Cadeler A/S operates as an offshore wind farm transportation and installation contractor in Denmark. It also provides wind farm construction, maintenance, decommissioning, and other tasks within the offshore industry, as well as marine and engineering services. The company owns and operates four offshore jack-up windfarm installation vessels. Cadeler A/S was incorporated in 2008 and is headquartered in Copenhagen, Denmark.