Critical Survey: Torm (NASDAQ:TRMD) and Icahn Enterprises (NASDAQ:IEP)

Torm (NASDAQ:TRMD) and Icahn Enterprises (NASDAQ:IEP) are both mid-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Torm and Icahn Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.34 billion	3.05	$285.30 million	$6.07	6.59
Icahn Enterprises	$9.66 billion	0.49	-$299.00 million	($0.74)	-9.01

Torm has higher earnings, but lower revenue than Icahn Enterprises. Icahn Enterprises is trading at a lower price-to-earnings ratio than Torm, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Torm and Icahn Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	0	2	1	1	2.75
Icahn Enterprises	1	0	0	0	1.00

Torm presently has a consensus target price of $38.00, suggesting a potential downside of 5.00%. Given Torm’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Torm is more favorable than Icahn Enterprises.

Volatility and Risk

Torm has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Icahn Enterprises has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Dividends

Torm pays an annual dividend of $7.01 per share and has a dividend yield of 17.5%. Icahn Enterprises pays an annual dividend of $2.00 per share and has a dividend yield of 30.0%. Torm pays out 115.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Icahn Enterprises pays out -270.3% of its earnings in the form of a dividend. Icahn Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Torm and Icahn Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torm	35.51%	27.24%	17.96%
Icahn Enterprises	-4.81%	-17.99%	-3.72%

Insider & Institutional Ownership

73.9% of Torm shares are owned by institutional investors. Comparatively, 87.1% of Icahn Enterprises shares are owned by institutional investors. 0.4% of Torm shares are owned by company insiders. Comparatively, 90.1% of Icahn Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Torm beats Icahn Enterprises on 11 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 Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.