Tsakos Energy Navigation (NYSE: TNP) and DryShips (NASDAQ:DRYS) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Volatility and Risk
Tsakos Energy Navigation has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, DryShips has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.
This is a summary of current ratings for Tsakos Energy Navigation and DryShips, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tsakos Energy Navigation||0||2||5||0||2.71|
Tsakos Energy Navigation currently has a consensus price target of $5.75, indicating a potential upside of 24.19%. Given Tsakos Energy Navigation’s higher possible upside, equities analysts plainly believe Tsakos Energy Navigation is more favorable than DryShips.
Earnings and Valuation
This table compares Tsakos Energy Navigation and DryShips’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tsakos Energy Navigation||$497.94 million||0.78||$195.68 million||$0.39||11.87|
|DryShips||$46.72 million||0.02||-$36.42 million||($273,305.91)||0.00|
Tsakos Energy Navigation has higher revenue and earnings than DryShips. DryShips is trading at a lower price-to-earnings ratio than Tsakos Energy Navigation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
28.3% of Tsakos Energy Navigation shares are held by institutional investors. Comparatively, 6.4% of DryShips shares are held by institutional investors. 1.0% of Tsakos Energy Navigation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.3%. DryShips pays an annual dividend of $0.28 per share and has a dividend yield of 9.0%. Tsakos Energy Navigation pays out 51.3% of its earnings in the form of a dividend. DryShips pays out 0.0% 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. DryShips is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Tsakos Energy Navigation and DryShips’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tsakos Energy Navigation||9.61%||3.40%||1.51%|
Tsakos Energy Navigation beats DryShips on 11 of the 14 factors compared between the two stocks.
About Tsakos Energy Navigation
Tsakos Energy Navigation Limited is a provider of international seaborne crude oil and petroleum product transportation services. The Company operates through maritime transportation of liquid energy related products segment. It operates a fleet of approximately 50 modern crude oil and petroleum product tankers that provide marine transportation services for national and other independent oil companies and refiners under long, medium and short-term charters. Its fleet also includes a liquefied natural gas (LNG) carrier and over two shuttle suezmax tankers with dynamic positioning technology (DP2). This fleet diversity includes a range of sister ships. The operating fleet totals over 5.2 million deadweight tonnage (dwt), all of which is double-hulled. Its diversified fleet, which includes VLCC, suezmax, aframax, panamax, handysize, handymax tankers, LNG carrier and DP2 shuttle tankers, allows it to serve its customers’ international petroleum product and crude oil transportation needs.
DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.
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