Analyzing Toro (NASDAQ:TORO) & Flex LNG (NYSE:FLNG)

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

Valuation & Earnings

This table compares Flex LNG and Toro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex LNG	$347.64 million	4.73	$74.82 million	$1.39	21.89
Toro	$22.39 million	3.71	$25.21 million	$0.04	96.75

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

Risk and Volatility

Flex LNG has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Toro has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Flex LNG and Toro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex LNG	0	2	0	0	2.00
Toro	1	0	0	0	1.00

Flex LNG presently has a consensus price target of $23.00, suggesting a potential downside of 24.41%. Given Flex LNG’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flex LNG is more favorable than Toro.

Insider & Institutional Ownership

1.7% of Toro shares are owned by institutional investors. 0.3% of Flex LNG shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flex LNG	21.52%	13.46%	3.83%
Toro	26.12%	2.61%	1.58%

Summary

Flex LNG beats Toro on 9 of the 13 factors compared between the two stocks.

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.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.