Financial Contrast: Nordic American Tankers (NYSE:NAT) & Torm (NASDAQ:TRMD)

Torm (NASDAQ:TRMD – Get Free Report) and Nordic American Tankers (NYSE:NAT – Get Free Report) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Torm and Nordic American Tankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torm 35.51% 27.24% 17.96%
Nordic American Tankers 47.04% 20.58% 10.38%

Analyst Recommendations

This is a summary of current ratings for Torm and Nordic American Tankers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torm 0 2 1 1 2.75
Nordic American Tankers 1 2 1 0 2.00

Torm currently has a consensus target price of $38.00, indicating a potential downside of 2.69%. Nordic American Tankers has a consensus target price of $6.00, indicating a potential downside of 27.23%. Given Torm’s stronger consensus rating and higher possible upside, equities analysts clearly believe Torm is more favorable than Nordic American Tankers.

Volatility and Risk

Torm has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.56, meaning that its stock price is 156% less volatile than the S&P 500.

Institutional and Insider Ownership

73.9% of Torm shares are held by institutional investors. Comparatively, 44.3% of Nordic American Tankers shares are held by institutional investors. 0.4% of Torm shares are held by company insiders. Comparatively, 2.9% of Nordic American Tankers shares are held by company 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.

Earnings and Valuation

This table compares Torm and Nordic American Tankers”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Torm $1.34 billion 2.97 $285.30 million $6.07 6.43
Nordic American Tankers $370.40 million 4.71 $12.27 million $0.59 13.97

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

Dividends

Torm pays an annual dividend of $7.01 per share and has a dividend yield of 18.0%. Nordic American Tankers pays an annual dividend of $1.08 per share and has a dividend yield of 13.1%. 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. Nordic American Tankers pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nordic American Tankers has raised its dividend for 1 consecutive years. Torm is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Torm beats Nordic American Tankers on 12 of the 17 factors compared between the two stocks.

About Torm

(Get Free Report)

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 Nordic American Tankers

(Get Free Report)

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.

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