Head-To-Head Review: Euroseas (NASDAQ:ESEA) and Hafnia (NYSE:HAFN)

Euroseas (NASDAQ:ESEA) and Hafnia (NYSE:HAFN) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Euroseas and Hafnia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euroseas	$212.90 million	2.04	$112.78 million	$17.02	3.63
Hafnia	$1.94 billion	1.66	$774.03 million	$0.85	7.45

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

Analyst Recommendations

This is a summary of current ratings and target prices for Euroseas and Hafnia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euroseas	0	0	1	0	3.00
Hafnia	0	1	1	0	2.50

Euroseas presently has a consensus target price of $62.00, suggesting a potential upside of 0.29%. Hafnia has a consensus target price of $6.50, suggesting a potential upside of 2.69%. Given Hafnia’s higher possible upside, analysts clearly believe Hafnia is more favorable than Euroseas.

Profitability

This table compares Euroseas and Hafnia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euroseas	53.75%	28.56%	17.10%
Hafnia	37.26%	18.74%	11.65%

Dividends

Euroseas pays an annual dividend of $2.80 per share and has a dividend yield of 4.5%. Hafnia pays an annual dividend of $0.48 per share and has a dividend yield of 7.6%. Euroseas pays out 16.5% of its earnings in the form of a dividend. Hafnia pays out 56.5% 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. Euroseas has increased its dividend for 3 consecutive years.

Risk & Volatility

Euroseas has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Hafnia has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

6.3% of Euroseas shares are owned by institutional investors. 55.9% of Euroseas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Euroseas beats Hafnia on 11 of the 16 factors compared between the two stocks.

About Euroseas

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.