Contrasting Imperial Petroleum (NASDAQ:IMPP) and EuroDry (NASDAQ:EDRY)

Imperial Petroleum (NASDAQ:IMPP) and EuroDry (NASDAQ:EDRY) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares Imperial Petroleum and EuroDry”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Imperial Petroleum	$147.48 million	0.98	$50.16 million	$1.04	3.84
EuroDry	$61.08 million	N/A	-$12.61 million	($3.91)	-3.38

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

Insider and Institutional Ownership

94.4% of Imperial Petroleum shares are held by institutional investors. Comparatively, 2.4% of EuroDry shares are held by institutional investors. 1.5% of Imperial Petroleum shares are held by insiders. Comparatively, 51.4% of EuroDry shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Imperial Petroleum and EuroDry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Imperial Petroleum	28.61%	13.60%	8.08%
EuroDry	-21.73%	-9.87%	-4.77%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Imperial Petroleum and EuroDry, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Imperial Petroleum	0	1	1	0	2.50
EuroDry	1	2	0	0	1.67

Imperial Petroleum presently has a consensus price target of $6.00, suggesting a potential upside of 50.38%. Given Imperial Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Imperial Petroleum is more favorable than EuroDry.

Volatility and Risk

Imperial Petroleum has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, EuroDry has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

Imperial Petroleum beats EuroDry on 12 of the 13 factors compared between the two stocks.

About Imperial Petroleum

Imperial Petroleum Inc. provides international seaborne transportation services to oil producers, refineries, and commodities traders. It carries refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals, crude oils, iron ore, coal and grains, and minor bulks, such as bauxite, phosphate, and fertilizers. As of April 1, 2024, the company owned and operated a fleet of six medium range refined petroleum product tankers; one Aframax tanker; two suezmax tankers; and two handysize drybulk carriers with a total capacity of 791,000 deadweight tons. The company was incorporated in 2021 and is based in Athens, Greece.

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.