Critical Survey: Teekay Tankers (NYSE:TNK) and COSCO SHIPPING (OTCMKTS:CICOY)

Teekay Tankers (NYSE:TNK) and COSCO SHIPPING (OTCMKTS:CICOY) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Institutional and Insider Ownership

52.7% of Teekay Tankers shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by 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 summary of current ratings and price targets for Teekay Tankers and COSCO SHIPPING, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	0	0	3	2	3.40
COSCO SHIPPING	2	2	0	0	1.50

Teekay Tankers currently has a consensus price target of $65.00, indicating a potential upside of 19.44%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, analysts clearly believe Teekay Tankers is more favorable than COSCO SHIPPING.

Earnings & Valuation

This table compares Teekay Tankers and COSCO SHIPPING”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.88 million	1.97	$403.67 million	$9.00	6.05
COSCO SHIPPING	$32.53 billion	0.86	$6.84 billion	N/A	N/A

COSCO SHIPPING has higher revenue and earnings than Teekay Tankers.

Profitability

This table compares Teekay Tankers and COSCO SHIPPING’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	32.87%	10.63%	9.58%
COSCO SHIPPING	N/A	N/A	N/A

Dividends

Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. COSCO SHIPPING pays an annual dividend of $0.57 per share and has a dividend yield of 6.5%. Teekay Tankers pays out 11.1% of its earnings in the form of a dividend. Teekay Tankers has raised its dividend for 2 consecutive years.

Risk & Volatility

Teekay Tankers has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500. Comparatively, COSCO SHIPPING has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Teekay Tankers beats COSCO SHIPPING on 11 of the 16 factors compared between the two stocks.

About Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.

About COSCO SHIPPING

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.