Comparing Teekay Tankers (NYSE:TNK) and Toro (NASDAQ:TORO)

Teekay Tankers (NYSE:TNK) and Toro (NASDAQ:TORO) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	2.74	$351.19 million	$10.09	7.47
Toro	$21.08 million	3.98	$25.21 million	$0.04	97.75

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

Insider & Institutional Ownership

52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 1.7% of Toro shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	36.90%	12.60%	11.41%
Toro	26.12%	2.61%	1.58%

Analyst Recommendations

This is a breakdown of recent ratings for Teekay Tankers and Toro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	0	2	3	2	3.00
Toro	1	0	0	0	1.00

Teekay Tankers presently has a consensus target price of $77.00, indicating a potential upside of 2.16%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, research analysts plainly believe Teekay Tankers is more favorable than Toro.

Volatility and Risk

Teekay Tankers has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500. Comparatively, Toro has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Summary

Teekay Tankers beats Toro on 12 of the 15 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 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.