Scorpio Tankers (NYSE:STNG) and StealthGas (GASS) Head to Head Survey

StealthGas (NASDAQ:GASS) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Dividends

Scorpio Tankers pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. StealthGas does not pay a dividend. Scorpio Tankers pays out -8.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

60.4% of StealthGas shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares StealthGas and Scorpio Tankers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StealthGas $164.33 million 0.84 -$12.28 million N/A N/A
Scorpio Tankers $585.05 million 2.10 -$190.07 million ($4.56) -5.24

StealthGas has higher earnings, but lower revenue than Scorpio Tankers.

Analyst Ratings

This is a breakdown of recent recommendations for StealthGas and Scorpio Tankers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StealthGas 0 0 1 0 3.00
Scorpio Tankers 0 1 7 0 2.88

StealthGas currently has a consensus price target of $5.50, suggesting a potential upside of 58.50%. Scorpio Tankers has a consensus price target of $30.71, suggesting a potential upside of 28.62%. Given StealthGas’ stronger consensus rating and higher possible upside, equities analysts clearly believe StealthGas is more favorable than Scorpio Tankers.

Risk and Volatility

StealthGas has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
StealthGas -7.47% 0.03% 0.01%
Scorpio Tankers -32.49% -9.51% -3.51%

Summary

StealthGas beats Scorpio Tankers on 9 of the 14 factors compared between the two stocks.

About StealthGas

StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. It also provides crude oil and product carriers chartered to oil producers, refiners, and commodities traders. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of April 17, 2018, it had a fleet of 56 vessels comprising 52 LPG carriers with a total capacity of 329,149 cubic meters; 3 medium range product tankers; and 1 Aframax oil tanker with a total capacity of 255,804 deadweight tons. The company was founded in 2004 and is based in Athens, Greece.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products worldwide. As of March 20, 2019, its owned or finance leased 109 product tankers, including 38 LR2 tankers, 12 LR1 tankers, 45 MR tankers, and 14 Handymax tankers with an average age of 3.6 years; and time or bareboat chartered-in 10 product tankers comprising 3 MR tankers and 7 Handymax tankers. The company was founded in 2009 and is based in Monaco.

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