Nordic American Tankers (NYSE:NAT – Get Free Report) and Genco Shipping & Trading (NYSE:GNK – Get Free Report) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Earnings & Valuation
This table compares Nordic American Tankers and Genco Shipping & Trading”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nordic American Tankers | $182.54 million | 6.32 | $12.27 million | $0.07 | 77.79 |
| Genco Shipping & Trading | $342.05 million | 2.96 | -$4.37 million | ($0.11) | -212.82 |
Profitability
This table compares Nordic American Tankers and Genco Shipping & Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nordic American Tankers | 6.39% | 2.47% | 1.28% |
| Genco Shipping & Trading | -1.28% | -0.12% | -0.10% |
Dividends
Nordic American Tankers pays an annual dividend of $0.68 per share and has a dividend yield of 12.5%. Genco Shipping & Trading pays an annual dividend of $2.00 per share and has a dividend yield of 8.5%. Nordic American Tankers pays out 971.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genco Shipping & Trading pays out -1,818.2% of its earnings in the form of a dividend. Nordic American Tankers has raised its dividend for 1 consecutive years. Nordic American Tankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Nordic American Tankers and Genco Shipping & Trading, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nordic American Tankers | 1 | 2 | 0 | 0 | 1.67 |
| Genco Shipping & Trading | 0 | 3 | 1 | 1 | 2.60 |
Nordic American Tankers presently has a consensus price target of $4.00, suggesting a potential downside of 26.54%. Genco Shipping & Trading has a consensus price target of $21.00, suggesting a potential downside of 10.29%. Given Genco Shipping & Trading’s stronger consensus rating and higher possible upside, analysts clearly believe Genco Shipping & Trading is more favorable than Nordic American Tankers.
Insider & Institutional Ownership
44.3% of Nordic American Tankers shares are held by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are held by institutional investors. 2.9% of Nordic American Tankers shares are held by company insiders. Comparatively, 2.4% of Genco Shipping & Trading shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Nordic American Tankers has a beta of -0.52, suggesting that its share price is 152% less volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Summary
Nordic American Tankers beats Genco Shipping & Trading on 10 of the 18 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 Genco Shipping & Trading
Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.
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