Analyzing StealthGas (GASS) & Scorpio Tankers (STNG)

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

Institutional and 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 company will outperform the market over the long term.

Risk and Volatility

StealthGas has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares StealthGas and Scorpio Tankers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StealthGas $164.33 million 0.85 -$12.28 million N/A N/A
Scorpio Tankers $585.05 million 1.65 -$190.07 million ($4.56) -4.13

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

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%

Dividends

Scorpio Tankers pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. StealthGas does not pay a dividend. Scorpio Tankers pays out -8.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations 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 presently has a consensus target price of $6.00, suggesting a potential upside of 71.92%. Scorpio Tankers has a consensus target price of $30.71, suggesting a potential upside of 63.11%. Given StealthGas’ stronger consensus rating and higher probable upside, research analysts clearly believe StealthGas is more favorable than Scorpio Tankers.

Summary

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

StealthGas Company Profile

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.

Scorpio Tankers Company Profile

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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