Analyzing Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and Hafnia (NYSE:HAFN)

Hafnia (NYSE:HAFN) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Hafnia and Nippon Yusen Kabushiki Kaisha, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	1	1	1	3.00
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Hafnia presently has a consensus target price of $6.50, suggesting a potential upside of 16.38%. Given Hafnia’s stronger consensus rating and higher possible upside, research analysts plainly believe Hafnia is more favorable than Nippon Yusen Kabushiki Kaisha.

Risk & Volatility

Hafnia has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Dividends

Hafnia pays an annual dividend of $0.58 per share and has a dividend yield of 10.4%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 3.1%. Hafnia pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nippon Yusen Kabushiki Kaisha pays out 19.8% of its earnings in the form of a dividend.

Profitability

This table compares Hafnia and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	29.50%	13.50%	8.46%
Nippon Yusen Kabushiki Kaisha	12.71%	10.11%	6.82%

Valuation & Earnings

This table compares Hafnia and Nippon Yusen Kabushiki Kaisha”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$2.22 billion	1.27	$774.03 million	$0.61	9.16
Nippon Yusen Kabushiki Kaisha	$17.00 billion	0.78	$1.51 billion	$0.96	6.39

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Hafnia. Nippon Yusen Kabushiki Kaisha is trading at a lower price-to-earnings ratio than Hafnia, indicating that it is currently the more affordable of the two stocks.

Summary

Hafnia beats Nippon Yusen Kabushiki Kaisha on 10 of the 15 factors compared between the two stocks.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.