Financial Analysis: Nordic American Offshore (NAO) & Dorian LPG (LPG)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nordic American Offshore N/A N/A N/A
Dorian LPG -23.65% -4.35% -2.42%

Valuation and Earnings

This table compares Nordic American Offshore and Dorian LPG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nordic American Offshore $18.44 million 1.03 -$197.29 million N/A N/A
Dorian LPG $159.34 million 2.75 -$20.40 million ($0.62) -12.82

Dorian LPG has higher revenue and earnings than Nordic American Offshore.

Dividends

Nordic American Offshore pays an annual dividend of $0.10 per share and has a dividend yield of 3.3%. Dorian LPG does not pay a dividend.

Insider & Institutional Ownership

55.3% of Dorian LPG shares are owned by institutional investors. 26.4% of Dorian LPG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nordic American Offshore and Dorian LPG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordic American Offshore 0 0 0 0 N/A
Dorian LPG 0 0 1 0 3.00

Risk & Volatility

Nordic American Offshore has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500. Comparatively, Dorian LPG has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Dorian LPG beats Nordic American Offshore on 7 of the 11 factors compared between the two stocks.

Nordic American Offshore Company Profile

Nordic American Offshore Ltd. owns and operates platform supply vessels (PSVs). As of December 31, 2017, it had a fleet of 10 PSVs. The company operates its vessels in the United Kingdom and in the Norwegian sectors of the North Sea. Nordic American Offshore Ltd. was founded in 2013 and is based in Hamilton, Bermuda.

Dorian LPG Company Profile

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide. It owns and operates very large gas carriers (VLGCs). As of June 26, 2018, its fleet consisted of 22 VLGCs with carrying capacity of approximately 1.8 million cubic meters. The company was founded in 2013 and is headquartered in Stamford, Connecticut.

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