Contrasting Dorian LPG (NYSE:LPG) and EuroDry (NASDAQ:EDRY)

Dorian LPG (NYSE:LPG) and EuroDry (NASDAQ:EDRY) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

Dorian LPG has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, EuroDry has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

62.5% of Dorian LPG shares are owned by institutional investors. Comparatively, 2.4% of EuroDry shares are owned by institutional investors. 13.6% of Dorian LPG shares are owned by company insiders. Comparatively, 51.4% of EuroDry shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Dorian LPG and EuroDry, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorian LPG	0	3	1	1	2.60
EuroDry	1	0	1	1	2.67

Dorian LPG presently has a consensus price target of $35.00, indicating a potential upside of 10.81%. EuroDry has a consensus price target of $23.50, indicating a potential upside of 10.33%. Given Dorian LPG’s higher possible upside, equities analysts clearly believe Dorian LPG is more favorable than EuroDry.

Valuation & Earnings

This table compares Dorian LPG and EuroDry”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorian LPG	$404.13 million	3.34	$90.17 million	$2.84	11.12
EuroDry	$52.26 million	1.16	-$4.26 million	($1.57)	-13.57

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dorian LPG	29.88%	11.82%	7.06%
EuroDry	-8.16%	-6.83%	-3.31%

Summary

Dorian LPG beats EuroDry on 10 of the 13 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.

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.