Critical Analysis: Dorian LPG (NYSE:LPG) versus Hafnia (NYSE:HAFN)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Hafnia and Dorian LPG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	2	1	0	2.33
Dorian LPG	0	2	2	0	2.50

Hafnia currently has a consensus price target of $6.50, indicating a potential upside of 2.12%. Dorian LPG has a consensus price target of $35.00, indicating a potential upside of 21.46%. Given Dorian LPG’s stronger consensus rating and higher possible upside, analysts clearly believe Dorian LPG is more favorable than Hafnia.

Volatility and Risk

Hafnia has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Dorian LPG has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

62.5% of Dorian LPG shares are held by institutional investors. 13.6% of Dorian LPG 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 Hafnia and Dorian LPG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$1.94 billion	1.67	$774.03 million	$0.85	7.49
Dorian LPG	$353.34 million	3.48	$90.17 million	$1.15	25.06

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hafnia	37.26%	18.74%	11.65%
Dorian LPG	15.15%	5.24%	3.08%

Summary

Dorian LPG beats Hafnia on 8 of the 14 factors compared between the two stocks.

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.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.