Gener8 Maritime (NYSE: GNRT) and Nordic American Tankers (NYSE:NAT) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Risk & Volatility
Gener8 Maritime has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Earnings & Valuation
This table compares Gener8 Maritime and Nordic American Tankers’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gener8 Maritime||$404.62 million||0.91||$67.30 million||($1.41)||-3.16|
|Nordic American Tankers||$236.79 million||1.66||-$4.45 million||($0.91)||-4.24|
Gener8 Maritime has higher revenue and earnings than Nordic American Tankers. Nordic American Tankers is trading at a lower price-to-earnings ratio than Gener8 Maritime, indicating that it is currently the more affordable of the two stocks.
This table compares Gener8 Maritime and Nordic American Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nordic American Tankers||0.06%||0.25%||0.16%|
This is a breakdown of recent ratings for Gener8 Maritime and Nordic American Tankers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nordic American Tankers||3||2||0||0||1.40|
Gener8 Maritime presently has a consensus target price of $10.00, indicating a potential upside of 124.72%. Nordic American Tankers has a consensus target price of $5.40, indicating a potential upside of 39.90%. Given Gener8 Maritime’s stronger consensus rating and higher possible upside, research analysts plainly believe Gener8 Maritime is more favorable than Nordic American Tankers.
Nordic American Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 3.1%. Gener8 Maritime does not pay a dividend. Nordic American Tankers pays out -13.2% of its earnings in the form of a dividend.
Insider and Institutional Ownership
76.1% of Gener8 Maritime shares are held by institutional investors. Comparatively, 23.7% of Nordic American Tankers shares are held by institutional investors. 13.7% of Gener8 Maritime shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Gener8 Maritime beats Nordic American Tankers on 10 of the 15 factors compared between the two stocks.
About Gener8 Maritime
Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.
About Nordic American Tankers
Nordic American Tankers Limited is an international tanker company. The Company owns approximately 26 vessels, including approximately two new buildings under construction, of approximately 156,000 deadweight tonnage (dwt) each. The Company’s Suezmaxes tankers can carry over one million barrels of oil. The vessels in the Company’s fleet are homogenous and interchangeable. The Company’s vessels are employed in the spot market. The Company’s vessels include Nordic Harrier, Nordic Hawk, Nordic Hunter, Nordic Voyager, Nordic Fighter, Nordic Freedom, Nordic Discovery, Nordic Saturn, Nordic Jupiter, Nordic Moon, Nordic Apollo, Nordic Cosmos, Nordic Sprite, Nordic Mistral, Nordic Passat, Nordic Vega, Nordic Breeze, Nordic Zenith, Nordic Sprinter, Nordic Skier and Nordic Light.
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