Critical Contrast: CMB.TECH (NYSE:CMBT) and Nordic American Tankers (NYSE:NAT)

CMB.TECH (NYSE:CMBT) and Nordic American Tankers (NYSE:NAT) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares CMB.TECH and Nordic American Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CMB.TECH	12.64%	4.28%	1.32%
Nordic American Tankers	1.12%	0.39%	0.21%

Volatility & Risk

CMB.TECH has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.45, indicating that its stock price is 145% less volatile than the S&P 500.

Institutional & Insider Ownership

44.3% of Nordic American Tankers shares are held by institutional investors. 2.9% of Nordic American Tankers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for CMB.TECH and Nordic American Tankers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CMB.TECH	1	0	0	1	2.50
Nordic American Tankers	0	3	0	0	2.00

Nordic American Tankers has a consensus price target of $3.25, indicating a potential downside of 4.83%. Given Nordic American Tankers’ higher possible upside, analysts clearly believe Nordic American Tankers is more favorable than CMB.TECH.

Earnings and Valuation

This table compares CMB.TECH and Nordic American Tankers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CMB.TECH	$1.30 billion	1.43	$870.83 million	$0.82	11.70
Nordic American Tankers	$294.82 million	2.45	$46.64 million	$0.02	170.75

CMB.TECH has higher revenue and earnings than Nordic American Tankers. CMB.TECH is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.

Dividends

CMB.TECH pays an annual dividend of $0.07 per share and has a dividend yield of 0.7%. Nordic American Tankers pays an annual dividend of $0.52 per share and has a dividend yield of 15.2%. CMB.TECH pays out 8.5% of its earnings in the form of a dividend. Nordic American Tankers pays out 2,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Summary

CMB.TECH beats Nordic American Tankers on 10 of the 17 factors compared between the two stocks.

About CMB.TECH

Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil worldwide. The company offers floating, storage, and offloading (FSO) services. It also owns and operates a fleet of vessels. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium. As of March 15, 2024, Euronav NV operates as subsidiary of CMB NV.

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.