Analyzing A.P. Moller-Maersk (OTCMKTS:AMKBY) and DHT (NYSE:DHT)

DHT (NYSE:DHT) and A.P. Moller-Maersk (OTCMKTS:AMKBY) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Profitability

This table compares DHT and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHT	42.35%	17.70%	13.16%
A.P. Moller-Maersk	5.05%	4.87%	3.15%

Earnings and Valuation

This table compares DHT and A.P. Moller-Maersk”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$498.40 million	6.01	$211.09 million	$1.31	14.22
A.P. Moller-Maersk	$53.99 billion	0.72	$2.73 billion	$0.88	13.89

A.P. Moller-Maersk has higher revenue and earnings than DHT. A.P. Moller-Maersk is trading at a lower price-to-earnings ratio than DHT, indicating that it is currently the more affordable of the two stocks.

Dividends

DHT pays an annual dividend of $1.64 per share and has a dividend yield of 8.8%. A.P. Moller-Maersk pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. DHT pays out 125.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. A.P. Moller-Maersk pays out 22.7% of its earnings in the form of a dividend.

Volatility & Risk

DHT has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

58.5% of DHT shares are held by institutional investors. 1.6% of DHT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for DHT and A.P. Moller-Maersk, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	4	0	2.67
A.P. Moller-Maersk	8	4	0	1	1.54

DHT presently has a consensus target price of $16.33, suggesting a potential downside of 12.34%. Given DHT’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DHT is more favorable than A.P. Moller-Maersk.

Summary

DHT beats A.P. Moller-Maersk on 12 of the 17 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

About A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.