Analyzing Capital Clean Energy Carriers (NASDAQ:CCEC) & Torm (NASDAQ:TRMD)

Torm (NASDAQ:TRMD) and Capital Clean Energy Carriers (NASDAQ:CCEC) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Torm and Capital Clean Energy Carriers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	0	2	1	1	2.75
Capital Clean Energy Carriers	0	3	2	0	2.40

Torm presently has a consensus target price of $35.00, suggesting a potential upside of 9.85%. Capital Clean Energy Carriers has a consensus target price of $24.75, suggesting a potential upside of 18.15%. Given Capital Clean Energy Carriers’ higher possible upside, analysts plainly believe Capital Clean Energy Carriers is more favorable than Torm.

Profitability

This table compares Torm and Capital Clean Energy Carriers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torm	24.45%	15.81%	10.24%
Capital Clean Energy Carriers	28.02%	6.73%	2.39%

Volatility & Risk

Torm has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Capital Clean Energy Carriers has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

73.9% of Torm shares are owned by institutional investors. 0.4% of Torm shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Torm and Capital Clean Energy Carriers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.34 billion	2.43	$285.30 million	$3.40	9.37
Capital Clean Energy Carriers	$388.68 million	3.15	$170.76 million	$1.89	11.08

Torm has higher revenue and earnings than Capital Clean Energy Carriers. Torm is trading at a lower price-to-earnings ratio than Capital Clean Energy Carriers, indicating that it is currently the more affordable of the two stocks.

Dividends

Torm pays an annual dividend of $2.04 per share and has a dividend yield of 6.4%. Capital Clean Energy Carriers pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Torm pays out 60.0% of its earnings in the form of a dividend. Capital Clean Energy Carriers pays out 31.7% 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.

Summary

Torm beats Capital Clean Energy Carriers on 10 of the 17 factors compared between the two stocks.

About Torm

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.

About Capital Clean Energy Carriers

Capital Clean Energy Carriers Corp., a shipping company, provides marine transportation services in Greece. The company’s vessels provide a range of cargoes, including liquefied natural gas, containerized goods, and cargo under short-term voyage charters, and medium to long-term time charters. It owns vessels, including Neo-Panamax container vessels, Panamax container vessels, cape-size bulk carrier, and LNG carriers. In addition, the company produces and distributes oil and natural gas, including biofuels, motor oil, lubricants, petrol, crudes, liquefied natural gas, marine fuels, natural gas liquids, and petrochemicals. It serves as the general partner of the company. The company was formerly known as Capital Product Partners L.P. and changed its name to Capital Clean Energy Carriers Corp. in August 2024. Capital Clean Energy Carriers Corp. was incorporated in 2007 and is headquartered in Piraeus, Greece. Capital Clean Energy Carriers Corp. operates as a subsidiary of Capital Maritime & Trading Corp.