Comparing Performance Shipping (NASDAQ:PSHG) and Teekay (NYSE:TK)

Performance Shipping (NASDAQ:PSHG) and Teekay (NYSE:TK) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Volatility and Risk

Performance Shipping has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Institutional and Insider Ownership

19.9% of Performance Shipping shares are owned by institutional investors. Comparatively, 46.7% of Teekay shares are owned by institutional investors. 0.4% of Performance Shipping shares are owned by company insiders. Comparatively, 2.4% of Teekay shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Performance Shipping and Teekay’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performance Shipping	$108.94 million	0.25	$69.41 million	$1.91	1.18
Teekay	$1.46 billion	0.46	$150.64 million	$1.53	4.85

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Performance Shipping and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Performance Shipping	0	0	1	0	3.00
Teekay	0	0	0	0	N/A

Profitability

This table compares Performance Shipping and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Performance Shipping	63.28%	33.48%	21.75%
Teekay	10.28%	9.07%	7.03%

Summary

Teekay beats Performance Shipping on 7 of the 12 factors compared between the two stocks.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2022, its fleet consisted of eight Aframax tanker vessels with a combined carrying capacity of 851,825 DWT. The company was incorporated in 2010 and is based in Athens, Greece.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.