Navios Maritime Partners (NYSE:NMM) and Scorpio Tankers (NYSE:STNG) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This table compares Navios Maritime Partners and Scorpio Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navios Maritime Partners||-5.65%||4.59%||2.73%|
Navios Maritime Partners pays an annual dividend of $0.08 per share and has a dividend yield of 8.4%. Scorpio Tankers pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Navios Maritime Partners pays out 36.4% of its earnings in the form of a dividend. Scorpio Tankers pays out -8.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares Navios Maritime Partners and Scorpio Tankers’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Navios Maritime Partners||$231.36 million||0.68||-$13.08 million||$0.22||4.32|
|Scorpio Tankers||$585.05 million||2.11||-$190.07 million||($4.56)||-5.26|
Navios Maritime Partners has higher earnings, but lower revenue than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than Navios Maritime Partners, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Navios Maritime Partners has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Navios Maritime Partners and Scorpio Tankers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navios Maritime Partners||1||0||1||0||2.00|
Navios Maritime Partners currently has a consensus price target of $1.80, indicating a potential upside of 89.47%. Scorpio Tankers has a consensus price target of $30.71, indicating a potential upside of 28.03%. Given Navios Maritime Partners’ higher possible upside, equities analysts clearly believe Navios Maritime Partners is more favorable than Scorpio Tankers.
Insider and Institutional Ownership
12.7% of Navios Maritime Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Navios Maritime Partners beats Scorpio Tankers on 10 of the 15 factors compared between the two stocks.
Navios Maritime Partners Company Profile
Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of dry cargo commodities, including iron ore, coal, grain, and fertilizers, as well as charters its vessels under medium to long-term charters. As of June 12, 2018, it owned a fleet of 38 vessels, including 13 Capesize vessels, 17 Panamaxes, 3 Ultra-Handymaxes, and 5 Container vessels. Navios GP L.L.C. serves as the general partner of Navios Maritime Partners L.P. The company was founded in 2007 and is based in Monaco.
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.
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