Star Bulk Carriers (NASDAQ:SBLK – Get Free Report) and Teekay Tankers (NYSE:TNK – Get Free Report) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Profitability
This table compares Star Bulk Carriers and Teekay Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Bulk Carriers | 5.85% | 2.66% | 1.64% |
| Teekay Tankers | 32.87% | 10.63% | 9.58% |
Earnings and Valuation
This table compares Star Bulk Carriers and Teekay Tankers”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Bulk Carriers | $1.27 billion | 1.80 | $304.65 million | $0.52 | 37.25 |
| Teekay Tankers | $1.23 billion | 1.45 | $403.67 million | $9.00 | 5.73 |
Teekay Tankers has lower revenue, but higher earnings than Star Bulk Carriers. Teekay Tankers is trading at a lower price-to-earnings ratio than Star Bulk Carriers, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Star Bulk Carriers has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Star Bulk Carriers and Teekay Tankers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Bulk Carriers | 0 | 1 | 1 | 1 | 3.00 |
| Teekay Tankers | 0 | 0 | 3 | 2 | 3.40 |
Star Bulk Carriers currently has a consensus target price of $22.00, indicating a potential upside of 13.58%. Teekay Tankers has a consensus target price of $65.00, indicating a potential upside of 26.06%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Teekay Tankers is more favorable than Star Bulk Carriers.
Institutional and Insider Ownership
33.9% of Star Bulk Carriers shares are held by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Star Bulk Carriers pays an annual dividend of $0.44 per share and has a dividend yield of 2.3%. Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Star Bulk Carriers pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay Tankers pays out 11.1% of its earnings in the form of a dividend. Teekay Tankers has raised its dividend for 2 consecutive years.
Summary
Teekay Tankers beats Star Bulk Carriers on 13 of the 18 factors compared between the two stocks.
About Star Bulk Carriers
Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of bulk commodities, including iron ores, minerals and grains, bauxite, fertilizers, and steel products. As of December 31, 2023, the company owned a fleet of 116 dry bulk vessels with combined carrying capacity of 13.1 million deadweight tonnage (dwt) consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt. Star Bulk Carriers Corp. was incorporated in 2006 and is based in Marousi, Greece.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
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