Analyzing Scorpio Tankers (NYSE:STNG) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY)

Scorpio Tankers (NYSE:STNG) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation & Earnings

This table compares Scorpio Tankers and Nippon Yusen Kabushiki Kaisha”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	4.31	$344.29 million	$10.17	7.89
Nippon Yusen Kabushiki Kaisha	$16.10 billion	0.86	$1.41 billion	$0.67	10.06

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

Profitability

This table compares Scorpio Tankers and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	48.44%	11.72%	9.28%
Nippon Yusen Kabushiki Kaisha	8.73%	5.69%	3.62%

Volatility & Risk

Scorpio Tankers has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Scorpio Tankers and Nippon Yusen Kabushiki Kaisha, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	0	3	6	1	2.80
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Scorpio Tankers currently has a consensus target price of $93.17, suggesting a potential upside of 16.10%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, research analysts plainly believe Scorpio Tankers is more favorable than Nippon Yusen Kabushiki Kaisha.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.8%. Scorpio Tankers pays out 17.7% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Scorpio Tankers has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

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

Summary

Scorpio Tankers beats Nippon Yusen Kabushiki Kaisha on 13 of the 18 factors compared between the two stocks.

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.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.