Comparing TORM (NASDAQ:TRMD) and Euronav (NYSE:CMBT)

TORM (NASDAQ:TRMD) and Euronav (NYSE:CMBT) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Institutional & 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares TORM and Euronav”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TORM	$1.64 billion	0.98	$648.27 million	$7.73	2.54
Euronav	$982.85 million	2.02	$858.03 million	$5.93	1.72

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

Dividends

TORM pays an annual dividend of $3.50 per share and has a dividend yield of 17.8%. Euronav pays an annual dividend of $0.52 per share and has a dividend yield of 5.1%. TORM pays out 45.3% of its earnings in the form of a dividend. Euronav pays out 8.8% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TORM and Euronav, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TORM	0	1	2	0	2.67
Euronav	0	0	0	0	0.00

TORM presently has a consensus price target of $40.00, indicating a potential upside of 103.46%. Given TORM’s stronger consensus rating and higher probable upside, analysts plainly believe TORM is more favorable than Euronav.

Profitability

This table compares TORM and Euronav’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TORM	43.81%	34.45%	20.31%
Euronav	117.02%	22.29%	10.17%

Volatility and Risk

TORM has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Euronav has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500.

Summary

TORM beats Euronav on 12 of the 16 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 Euronav

Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil worldwide. The company offers floating, storage, and offloading (FSO) services. It also owns and operates a fleet of vessels. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium. As of March 15, 2024, Euronav NV operates as subsidiary of CMB NV.