Head-To-Head Contrast: EuroDry (NASDAQ:EDRY) versus Imperial Petroleum (NASDAQ:IMPP)

EuroDry (NASDAQ:EDRY) and Imperial Petroleum (NASDAQ:IMPP) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares EuroDry and Imperial Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroDry	-21.73%	-9.87%	-4.77%
Imperial Petroleum	28.61%	13.60%	8.08%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for EuroDry and Imperial Petroleum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	2	0	0	1.67
Imperial Petroleum	0	1	1	0	2.50

Imperial Petroleum has a consensus target price of $6.00, suggesting a potential upside of 56.66%. Given Imperial Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Imperial Petroleum is more favorable than EuroDry.

Insider & Institutional Ownership

2.4% of EuroDry shares are owned by institutional investors. Comparatively, 94.4% of Imperial Petroleum shares are owned by institutional investors. 51.4% of EuroDry shares are owned by company insiders. Comparatively, 1.5% of Imperial Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

EuroDry has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Imperial Petroleum has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares EuroDry and Imperial Petroleum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$61.08 million	N/A	-$12.61 million	($3.91)	-3.36
Imperial Petroleum	$147.48 million	0.94	$50.16 million	$1.04	3.68

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

Summary

Imperial Petroleum beats EuroDry on 12 of the 13 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

About Imperial Petroleum

Imperial Petroleum Inc. provides international seaborne transportation services to oil producers, refineries, and commodities traders. It carries refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals, crude oils, iron ore, coal and grains, and minor bulks, such as bauxite, phosphate, and fertilizers. As of April 1, 2024, the company owned and operated a fleet of six medium range refined petroleum product tankers; one Aframax tanker; two suezmax tankers; and two handysize drybulk carriers with a total capacity of 791,000 deadweight tons. The company was incorporated in 2021 and is based in Athens, Greece.