Head to Head Analysis: EuroDry (NASDAQ:EDRY) and Scorpio Tankers (NYSE:STNG)

EuroDry (NASDAQ:EDRY) and Scorpio Tankers (NYSE:STNG) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares EuroDry and Scorpio Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroDry	-0.55%	-0.88%	-0.43%
Scorpio Tankers	48.44%	11.72%	9.28%

Earnings and Valuation

This table compares EuroDry and Scorpio Tankers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$52.26 million	1.23	-$4.26 million	($0.13)	-171.58
Scorpio Tankers	$938.22 million	4.10	$344.29 million	$10.17	7.50

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

Institutional & Insider Ownership

2.4% of EuroDry shares are owned by institutional investors. Comparatively, 54.6% of Scorpio Tankers shares are owned by institutional investors. 51.4% of EuroDry shares are owned by company insiders. Comparatively, 7.3% of Scorpio Tankers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

EuroDry has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for EuroDry and Scorpio Tankers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	1	1	0	2.00
Scorpio Tankers	0	3	6	1	2.80

EuroDry presently has a consensus target price of $23.50, indicating a potential upside of 5.36%. Scorpio Tankers has a consensus target price of $93.50, indicating a potential upside of 22.57%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts plainly believe Scorpio Tankers is more favorable than EuroDry.

Summary

Scorpio Tankers beats EuroDry on 13 of the 15 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.