Hafnia (NYSE:HAFN – Get Free Report) and Nordic American Tankers (NYSE:NAT – Get Free Report) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Dividends
Hafnia pays an annual dividend of $0.59 per share and has a dividend yield of 10.3%. Nordic American Tankers pays an annual dividend of $0.52 per share and has a dividend yield of 12.8%. Hafnia pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nordic American Tankers pays out 2,600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nordic American Tankers has raised its dividend for 1 consecutive years. Nordic American Tankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Hafnia has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.43, meaning that its share price is 143% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hafnia | $1.94 billion | N/A | $774.03 million | $0.61 | 9.41 |
| Nordic American Tankers | $225.10 million | 3.81 | $46.64 million | $0.02 | 202.75 |
Hafnia has higher revenue and earnings than Nordic American Tankers. Hafnia is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
44.3% of Nordic American Tankers shares are held by institutional investors. 2.9% of Nordic American Tankers shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Hafnia and Nordic American Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hafnia | 29.50% | 13.50% | 8.46% |
| Nordic American Tankers | 1.12% | 0.39% | 0.21% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Hafnia and Nordic American Tankers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hafnia | 0 | 1 | 0 | 1 | 3.00 |
| Nordic American Tankers | 0 | 3 | 0 | 0 | 2.00 |
Nordic American Tankers has a consensus target price of $3.25, suggesting a potential downside of 19.85%. Given Nordic American Tankers’ higher probable upside, analysts clearly believe Nordic American Tankers is more favorable than Hafnia.
Summary
Hafnia beats Nordic American Tankers on 10 of the 16 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 Nordic American Tankers
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.
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