Torm (NASDAQ:TRMD) and Keppel (OTCMKTS:KPELY) Financial Contrast

Torm (NASDAQ:TRMD) and Keppel (OTCMKTS:KPELY) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Risk and Volatility

Torm has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Keppel has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Torm and Keppel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	1	0	3	1	2.80
Keppel	0	0	0	1	4.00

Torm presently has a consensus target price of $27.50, suggesting a potential upside of 42.63%. Given Torm’s higher probable upside, research analysts clearly believe Torm is more favorable than Keppel.

Earnings and Valuation

This table compares Torm and Keppel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.56 billion	1.16	$612.50 million	$4.74	4.07
Keppel	$4.94 billion	2.36	$712.27 million	N/A	N/A

Keppel has higher revenue and earnings than Torm.

Dividends

Torm pays an annual dividend of $1.17 per share and has a dividend yield of 6.1%. Keppel pays an annual dividend of $0.58 per share and has a dividend yield of 4.5%. Torm pays out 24.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

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

Profitability

This table compares Torm and Keppel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torm	32.20%	22.40%	13.44%
Keppel	N/A	N/A	N/A

Summary

Torm beats Keppel on 8 of the 14 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 Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.