Scorpio Tankers (NYSE:STNG) and Eagle Bulk Shipping (NASDAQ:EGLE) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Profitability
This table compares Scorpio Tankers and Eagle Bulk Shipping's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Scorpio Tankers | 18.26% | 8.82% | 3.49% |
| Eagle Bulk Shipping | -17.08% | -9.71% | -4.46% |
Institutional and Insider Ownership
38.7% of Scorpio Tankers shares are owned by institutional investors. Comparatively, 78.3% of Eagle Bulk Shipping shares are owned by institutional investors. 4.1% of Eagle Bulk Shipping shares are owned by company insiders. 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.
Valuation and Earnings
This table compares Scorpio Tankers and Eagle Bulk Shipping's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Scorpio Tankers | $704.33 million | 1.51 | $-48,490,000.00 | ($0.94) | -19.50 |
| Eagle Bulk Shipping | $292.38 million | 1.59 | $-21,700,000.00 | ($1.75) | -21.33 |
Eagle Bulk Shipping has lower revenue, but higher earnings than Scorpio Tankers. Eagle Bulk Shipping is trading at a lower price-to-earnings ratio than Scorpio Tankers, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Scorpio Tankers and Eagle Bulk Shipping, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Scorpio Tankers | 1 | 2 | 6 | 0 | 2.56 |
| Eagle Bulk Shipping | 0 | 0 | 6 | 0 | 3.00 |
Scorpio Tankers presently has a consensus target price of $22.00, suggesting a potential upside of 20.02%. Eagle Bulk Shipping has a consensus target price of $31.6667, suggesting a potential downside of 15.17%. Given Scorpio Tankers' higher possible upside, equities research analysts plainly believe Scorpio Tankers is more favorable than Eagle Bulk Shipping.
Risk & Volatility
Scorpio Tankers has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Eagle Bulk Shipping has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Summary
Scorpio Tankers beats Eagle Bulk Shipping on 7 of the 13 factors compared between the two stocks.
