Critical Analysis: Seanergy Maritime (NASDAQ:SHIP) vs. Hafnia (NYSE:HAFN)

Hafnia (NYSE:HAFN) and Seanergy Maritime (NASDAQ:SHIP) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Hafnia and Seanergy Maritime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	35.54%	14.71%	9.21%
Seanergy Maritime	13.08%	8.35%	3.71%

Earnings & Valuation

This table compares Hafnia and Seanergy Maritime”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$955.87 million	4.32	$339.68 million	$0.68	11.86
Seanergy Maritime	$158.10 million	1.90	$21.24 million	$1.00	14.34

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

Insider and Institutional Ownership

29.4% of Seanergy Maritime shares are owned by institutional investors. 4.7% of Seanergy Maritime shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Hafnia has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Seanergy Maritime has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hafnia and Seanergy Maritime, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	2	0	1	2.67
Seanergy Maritime	0	1	2	1	3.00

Seanergy Maritime has a consensus target price of $17.00, indicating a potential upside of 18.55%. Given Seanergy Maritime’s stronger consensus rating and higher possible upside, analysts plainly believe Seanergy Maritime is more favorable than Hafnia.

Dividends

Hafnia pays an annual dividend of $0.70 per share and has a dividend yield of 8.7%. Seanergy Maritime pays an annual dividend of $0.80 per share and has a dividend yield of 5.6%. Hafnia pays out 102.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seanergy Maritime pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Seanergy Maritime beats Hafnia on 9 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 Seanergy Maritime

Seanergy Maritime Holdings Corp., a shipping company, provides seaborne transportation of dry bulk commodities worldwide. It operates a fleet of 16 Capesize dry bulk vessels and one Newcastlemax dry bulk vessel with a cargo-carrying capacity of approximately 3,054,820 dwt. The company was formerly known as Seanergy Merger Corp. and changed its name to Seanergy Maritime Holdings Corp. in July 2008. Seanergy Maritime Holdings Corp. was incorporated in 2008 and is based in Glyfada, Greece.