Scorpio Tankers (NYSE:STNG) and TOP SHIPS (NASDAQ:TOPS) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Scorpio Tankers and TOP SHIPS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scorpio Tankers -32.49% -9.51% -3.51%
TOP SHIPS N/A N/A N/A

Valuation and Earnings

This table compares Scorpio Tankers and TOP SHIPS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scorpio Tankers $585.05 million 2.13 -$190.07 million ($4.56) -5.32
TOP SHIPS $41.05 million 0.46 -$11.13 million N/A N/A

TOP SHIPS has lower revenue, but higher earnings than Scorpio Tankers.

Risk and Volatility

Scorpio Tankers has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, TOP SHIPS has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Scorpio Tankers and TOP SHIPS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scorpio Tankers 0 1 7 0 2.88
TOP SHIPS 0 0 0 0 N/A

Scorpio Tankers presently has a consensus target price of $30.71, indicating a potential upside of 26.55%. Given Scorpio Tankers’ higher probable upside, analysts clearly believe Scorpio Tankers is more favorable than TOP SHIPS.

Dividends

Scorpio Tankers pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. TOP SHIPS does not pay a dividend. Scorpio Tankers pays out -8.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.9% of TOP SHIPS shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Scorpio Tankers beats TOP SHIPS on 7 of the 12 factors compared between the two stocks.

Scorpio Tankers Company Profile

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products worldwide. As of March 20, 2019, its owned or finance leased 109 product tankers, including 38 LR2 tankers, 12 LR1 tankers, 45 MR tankers, and 14 Handymax tankers with an average age of 3.6 years; and time or bareboat chartered-in 10 product tankers comprising 3 MR tankers and 7 Handymax tankers. The company was founded in 2009 and is based in Monaco.

TOP SHIPS Company Profile

Top Ships Inc. owns and operates tanker vessels worldwide. The company's medium range tanker vessels transport crude oil, petroleum products, and bulk liquid chemicals. As of December 31, 2017, it had a fleet of two chartered-in 49,737 deadweight ton (dwt) product/chemical tankers vessels, the M/T Stenaweco Energy and the M/T Stenaweco Evolution; two 39,208 dwt product/chemical tankers vessels, the M/T Eco Fleet and the M/T Eco Revolution; three 49,737 dwt product/chemical tankers, the M/T Stenaweco Excellence, M/T Nord Valiant, and M/T Stenaweco Elegance; and a 49,737 dwt product/chemical tanker vessel, the M/T Eco Holmby Hills. The company was formerly known as Top Tankers Inc. and changed its name to Top Ships Inc. in December 2007. Top Ships Inc. was founded in 2000 and is based in Maroussi, Greece.

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