Head-To-Head Analysis: StealthGas (NASDAQ:GASS) vs. Flex LNG (NYSE:FLNG)

StealthGas (NASDAQ:GASS) and Flex LNG (NYSE:FLNG) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares StealthGas and Flex LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StealthGas	35.16%	9.68%	8.52%
Flex LNG	27.84%	14.41%	4.35%

Risk & Volatility

StealthGas has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Institutional & Insider Ownership

66.3% of StealthGas shares are owned by institutional investors. 22.1% of StealthGas shares are owned by company insiders. Comparatively, 0.3% of Flex LNG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for StealthGas and Flex LNG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StealthGas	0	0	1	0	3.00
Flex LNG	0	3	0	0	2.00

Flex LNG has a consensus price target of $23.00, suggesting a potential downside of 5.70%. Given Flex LNG’s higher possible upside, analysts plainly believe Flex LNG is more favorable than StealthGas.

Valuation & Earnings

This table compares StealthGas and Flex LNG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StealthGas	$167.26 million	1.39	$69.86 million	$1.65	3.79
Flex LNG	$356.35 million	3.69	$117.68 million	$1.84	13.26

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

Summary

Flex LNG beats StealthGas on 8 of the 14 factors compared between the two stocks.

About StealthGas

StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer, as well as ammonia; refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel; and edible oils and chemicals. It offers crude oil and natural gas. The company operates a fleet of 33 LPG carries, including six JV vessels. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.

About Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.