Scorpio Tankers (NYSE:STNG) & COSTAMARE Inc/SH (CMRE) Head-To-Head Contrast

COSTAMARE Inc/SH (NYSE: STNG) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Insider and Institutional Ownership

26.0% of COSTAMARE Inc/SH shares are owned by institutional investors. Comparatively, 60.7% of Scorpio Tankers shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

COSTAMARE Inc/SH has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Dividends

COSTAMARE Inc/SH pays an annual dividend of $0.40 per share and has a dividend yield of 5.7%. Scorpio Tankers pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. COSTAMARE Inc/SH pays out 51.9% of its earnings in the form of a dividend. Scorpio Tankers pays out -8.5% 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.

Profitability

This table compares COSTAMARE Inc/SH and Scorpio Tankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COSTAMARE Inc/SH 15.65% 5.96% 3.06%
Scorpio Tankers -31.44% -9.08% -3.36%

Analyst Ratings

This is a summary of current ratings for COSTAMARE Inc/SH and Scorpio Tankers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COSTAMARE Inc/SH 0 2 2 0 2.50
Scorpio Tankers 0 0 8 0 3.00

COSTAMARE Inc/SH currently has a consensus price target of $7.75, suggesting a potential upside of 10.24%. Scorpio Tankers has a consensus price target of $4.20, suggesting a potential upside of 118.75%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts clearly believe Scorpio Tankers is more favorable than COSTAMARE Inc/SH.

Earnings & Valuation

This table compares COSTAMARE Inc/SH and Scorpio Tankers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COSTAMARE Inc/SH $412.43 million 1.86 $72.87 million $0.77 9.13
Scorpio Tankers $512.73 million 1.24 -$158.24 million ($0.47) -4.09

COSTAMARE Inc/SH has higher earnings, but lower revenue than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than COSTAMARE Inc/SH, indicating that it is currently the more affordable of the two stocks.

Summary

COSTAMARE Inc/SH beats Scorpio Tankers on 9 of the 15 factors compared between the two stocks.

About COSTAMARE Inc/SH

Costamare Inc. is a holding company, engages in the provision of containerships chartering. It owns vessels such as new build containerships and second hand vessel. The company was founded on April 21, 2008 and is headquartered in Monaco, Monaco.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products worldwide. As of March 22, 2018, its fleet consisted of 109 tankers, including 38 LR2, 12 LR1, 45 MR, and 14 Handymax tankers with an average age of approximately 2.6 years; and 20 time or bareboat chartered-in tankers, which include 2 LR2, 10 MR, and 8 Handymax tankers. The company was founded in 2009 and is based in Monaco.

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