Overseas Shipholding Group (OSG) versus Euronav (EURN) Critical Review

Overseas Shipholding Group (NYSE: OSG) and Euronav (NYSE:EURN) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Earnings & Valuation

This table compares Overseas Shipholding Group and Euronav’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Overseas Shipholding Group $462.42 million 0.43 -$293.61 million $0.04 67.00
Euronav $691.26 million 2.03 $204.04 million $0.21 41.91

Euronav has higher revenue and earnings than Overseas Shipholding Group. Euronav is trading at a lower price-to-earnings ratio than Overseas Shipholding Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Overseas Shipholding Group and Euronav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Overseas Shipholding Group -66.23% 26.01% 6.63%
Euronav 5.90% 0.49% 0.31%

Insider and Institutional Ownership

61.5% of Overseas Shipholding Group shares are owned by institutional investors. Comparatively, 22.2% of Euronav shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Overseas Shipholding Group and Euronav, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Overseas Shipholding Group 0 0 0 0 N/A
Euronav 0 1 2 0 2.67

Euronav has a consensus target price of $9.00, indicating a potential upside of 2.27%. Given Euronav’s higher possible upside, analysts clearly believe Euronav is more favorable than Overseas Shipholding Group.

Dividends

Euronav pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Overseas Shipholding Group does not pay a dividend. Euronav pays out 57.1% of its earnings in the form of a dividend.

Summary

Euronav beats Overseas Shipholding Group on 9 of the 13 factors compared between the two stocks.

About Overseas Shipholding Group

Overseas Shipholding Group, Inc. (OSG) is a tanker company engaged primarily in the ocean transportation of crude oil and petroleum products. The Company’s vessel operations are organized into strategic business units and focused on market segments: crude oil, refined petroleum products and the United States Flag. The International Flag Crude Tanker unit manages International Flag ultra large crude carrier (ULCC), very large crude carrier (VLCC), Suezmax, Aframax, Panamax and Lightering tankers; the International Flag Product Carrier unit principally manages LR1 and MR product carriers and the United States unit manages the Company’s United States Flag vessels. In August 2014, the Company announced that it has emerged from Chapter 11 as a newly reorganized company.

About Euronav

Euronav NV, together with its subsidiaries, owns, operates, and manages a fleet of vessels for the ocean transportation and storage of crude oil and petroleum products worldwide. The company operates through two segments, Tankers; and Floating Production, Storage, and Offloading Operations. As of April 4, 2017, it owned and operated a fleet of 55 double hulled vessels, including 31 very large crude carriers, 1 V-Plus vessel, 19 Suezmax vessels, and 2 floating, storage, and offloading vessels, as well as 2 Suezmax vessels under construction. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium.

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