Scorpio Tankers (NYSE:STNG) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) Critical Survey

Scorpio Tankers (NYSE:STNG) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Scorpio Tankers and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	48.44%	11.72%	9.28%
Nippon Yusen Kabushiki Kaisha	8.73%	5.60%	3.51%

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.9%. Scorpio Tankers pays out 17.7% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Scorpio Tankers has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Scorpio Tankers has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Earnings & Valuation

This table compares Scorpio Tankers and Nippon Yusen Kabushiki Kaisha”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	3.89	$344.29 million	$10.17	7.12
Nippon Yusen Kabushiki Kaisha	$16.10 billion	0.82	$1.40 billion	$0.67	9.67

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Scorpio Tankers and Nippon Yusen Kabushiki Kaisha, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	0	4	6	0	2.60
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Scorpio Tankers presently has a consensus target price of $93.50, suggesting a potential upside of 29.08%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Scorpio Tankers is more favorable than Nippon Yusen Kabushiki Kaisha.

Summary

Scorpio Tankers beats Nippon Yusen Kabushiki Kaisha on 12 of the 17 factors compared between the two stocks.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.