Chevron (NYSE:CVX) vs. Nordic American Tankers (NYSE:NAT) Head-To-Head Comparison

Chevron (NYSE:CVX) and Nordic American Tankers (NYSE:NAT) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Chevron and Nordic American Tankers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chevron	$208.71 billion	1.96	$12.30 billion	$10.43	19.81
Nordic American Tankers	$182.54 million	8.95	$12.27 million	$0.59	13.08

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

Analyst Recommendations

This is a summary of current ratings for Chevron and Nordic American Tankers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chevron	1	5	20	0	2.73
Nordic American Tankers	1	2	1	0	2.00

Chevron currently has a consensus target price of $211.35, indicating a potential upside of 2.28%. Nordic American Tankers has a consensus target price of $5.33, indicating a potential downside of 30.88%. Given Chevron’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Chevron is more favorable than Nordic American Tankers.

Dividends

Chevron pays an annual dividend of $7.12 per share and has a dividend yield of 3.4%. Nordic American Tankers pays an annual dividend of $1.08 per share and has a dividend yield of 14.0%. Chevron pays out 68.3% of its earnings in the form of a dividend. Nordic American Tankers pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chevron has raised its dividend for 38 consecutive years and Nordic American Tankers has raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chevron	9.57%	11.09%	6.54%
Nordic American Tankers	47.04%	20.58%	10.38%

Volatility & Risk

Chevron has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.54, meaning that its stock price is 154% less volatile than the S&P 500.

Insider and Institutional Ownership

72.4% of Chevron shares are owned by institutional investors. Comparatively, 44.3% of Nordic American Tankers shares are owned by institutional investors. 0.6% of Chevron shares are owned by insiders. Comparatively, 2.9% of Nordic American Tankers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Chevron beats Nordic American Tankers on 11 of the 17 factors compared between the two stocks.

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

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.