Toro (NASDAQ:TORO) versus Flex LNG (NYSE:FLNG) Financial Review

Toro (NASDAQ:TORO) and Flex LNG (NYSE:FLNG) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Valuation and Earnings

This table compares Toro and Flex LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$22.39 million	3.71	$25.21 million	$0.04	96.75
Flex LNG	$347.64 million	4.73	$74.82 million	$1.39	21.89

Flex LNG has higher revenue and earnings than Toro. Flex LNG is trading at a lower price-to-earnings ratio than Toro, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Toro and Flex LNG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	1	0	0	0	1.00
Flex LNG	0	2	0	0	2.00

Flex LNG has a consensus price target of $23.00, indicating a potential downside of 24.41%. Given Flex LNG’s stronger consensus rating and higher possible upside, analysts clearly believe Flex LNG is more favorable than Toro.

Profitability

This table compares Toro and Flex LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	26.12%	2.61%	1.58%
Flex LNG	21.52%	13.46%	3.83%

Insider and Institutional Ownership

1.7% of Toro shares are owned by institutional investors. 0.3% of Flex LNG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Toro has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Summary

Flex LNG beats Toro on 9 of the 13 factors compared between the two stocks.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.

About Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.