Nordic American Tankers (NYSE:NAT) & Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) Head-To-Head Analysis

Nordic American Tankers (NYSE:NAT) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

44.3% of Nordic American Tankers shares are held by institutional investors. 2.9% of Nordic American Tankers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Nordic American Tankers and Ultrapetrol (Bahamas), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordic American Tankers	0	2	0	0	2.00
Ultrapetrol (Bahamas)	0	0	0	0	0.00

Nordic American Tankers currently has a consensus price target of $3.00, indicating a potential downside of 7.41%. Given Ultrapetrol (Bahamas)’s higher possible upside, analysts plainly believe Ultrapetrol (Bahamas) is more favorable than Nordic American Tankers.

Profitability

This table compares Nordic American Tankers and Ultrapetrol (Bahamas)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nordic American Tankers	7.58%	2.67%	1.54%
Ultrapetrol (Bahamas)	N/A	N/A	N/A

Valuation and Earnings

This table compares Nordic American Tankers and Ultrapetrol (Bahamas)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordic American Tankers	$225.10 million	3.05	$46.64 million	$0.07	46.29
Ultrapetrol (Bahamas)	N/A	N/A	N/A	N/A	N/A

Nordic American Tankers has higher revenue and earnings than Ultrapetrol (Bahamas).

Risk and Volatility

Nordic American Tankers has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500. Comparatively, Ultrapetrol (Bahamas) has a beta of -0.79, meaning that its stock price is 179% less volatile than the S&P 500.

Summary

Nordic American Tankers beats Ultrapetrol (Bahamas) on 8 of the 9 factors compared between the two stocks.

About Nordic American Tankers

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.

About Ultrapetrol (Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. The River Business segment owns and operates dry and tanker barges, and push boats in the Hidrovia region of South America. Its dry barges transport agricultural and forestry products, iron ore, and other cargoes; and tanker barges carry petroleum products, vegetable oils, and other liquids. As of December 31, 2015, this segment had 681 barges with approximately 1.3 million dwt capacity; and 34 push boats. The Offshore Supply Business segment owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies. It transports supplies, such as containerized equipment, drill casings, pipes, and heavy loads; fuel, water, drilling fluids, and bulk cement; and various other supplies to drilling rigs and platforms. This segment's fleet consisted of 13 platform supply vessels and 1 remotely operated vehicle. The Ocean Business segment owns and operates oceangoing vessels, which transports petroleum products, as well as a container line service in the Argentine cabotage trade. The company serves petroleum, agricultural, and mining companies. Ultrapetrol (Bahamas) Limited was founded in 1992 and is headquartered in Nassau, the Bahamas. Ultrapetrol (Bahamas) Limited is a subsidiary of Sparrow Capital Investments Ltd.