StealthGas (NYSE: NAO) and Nordic American Offshore (NYSE:NAO) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

StealthGas has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Nordic American Offshore has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for StealthGas and Nordic American Offshore, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StealthGas 0 0 1 0 3.00
Nordic American Offshore 0 0 0 0 N/A

StealthGas presently has a consensus target price of $7.00, indicating a potential upside of 94.44%. Given StealthGas’ higher probable upside, analysts clearly believe StealthGas is more favorable than Nordic American Offshore.

Insider and Institutional Ownership

59.7% of StealthGas shares are held by institutional investors. Comparatively, 16.0% of Nordic American Offshore shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Nordic American Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 4.1%. StealthGas does not pay a dividend.

Earnings and Valuation

This table compares StealthGas and Nordic American Offshore’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StealthGas $154.31 million 0.93 -$1.21 million $0.14 25.71
Nordic American Offshore $16.08 million 3.78 -$29.32 million N/A N/A

StealthGas has higher revenue and earnings than Nordic American Offshore.

Profitability

This table compares StealthGas and Nordic American Offshore’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StealthGas -4.80% 0.60% 0.33%
Nordic American Offshore -211.28% -13.89% -8.82%

Summary

StealthGas beats Nordic American Offshore on 9 of the 11 factors compared between the two stocks.

About StealthGas

StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. It also provides crude oil and product carriers chartered to oil producers, refiners, and commodities traders. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of April 17, 2018, it had a fleet of 56 vessels comprising 52 LPG carriers with a total capacity of 329,149 cubic meters; 3 medium range product tankers; and 1 Aframax oil tanker with a total capacity of 255,804 deadweight tons. The company was founded in 2004 and is based in Athens, Greece.

About Nordic American Offshore

Nordic American Offshore Ltd. owns and operates platform supply vessels (PSVs). As of December 31, 2017, it had a fleet of 10 PSVs. The company operates its vessels in the United Kingdom and in the Norwegian sectors of the North Sea. Nordic American Offshore Ltd. was founded in 2013 and is based in Hamilton, Bermuda.

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