Scorpio Tankers (NYSE:STNG) & NACCO Industries (NYSE:NC) Head to Head Analysis

Scorpio Tankers (NYSE:STNG) and NACCO Industries (NYSE:NC) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Insider and Institutional Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. Comparatively, 49.1% of NACCO Industries shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by company insiders. Comparatively, 44.8% of NACCO Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. NACCO Industries pays an annual dividend of $1.05 per share and has a dividend yield of 2.9%. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. NACCO Industries pays out 45.7% 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 increased its dividend for 2 consecutive years and NACCO Industries has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Scorpio Tankers and NACCO Industries”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	4.37	$344.29 million	$16.01	5.07
NACCO Industries	$277.20 million	0.99	$17.57 million	$2.30	15.84

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

Risk and Volatility

Scorpio Tankers has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Scorpio Tankers and NACCO Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	67.16%	16.43%	13.14%
NACCO Industries	6.21%	4.00%	2.60%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Scorpio Tankers and NACCO Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	1	5	5	0	2.36
NACCO Industries	0	1	0	0	2.00

Scorpio Tankers presently has a consensus target price of $91.57, suggesting a potential upside of 12.70%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, equities analysts plainly believe Scorpio Tankers is more favorable than NACCO Industries.

Summary

Scorpio Tankers beats NACCO Industries on 13 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 NACCO Industries

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.