Tsakos Energy Navigation (NYSE:TEN) versus ZIM Integrated Shipping Services (NYSE:ZIM) Financial Survey

ZIM Integrated Shipping Services (NYSE:ZIM) and Tsakos Energy Navigation (NYSE:TEN) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Insider & Institutional Ownership

21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. Comparatively, 19.2% of Tsakos Energy Navigation shares are held by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are held by insiders. Comparatively, 1.4% of Tsakos Energy Navigation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

ZIM Integrated Shipping Services pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Tsakos Energy Navigation pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. ZIM Integrated Shipping Services pays out 7.4% of its earnings in the form of a dividend. Tsakos Energy Navigation pays out 16.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ZIM Integrated Shipping Services has increased its dividend for 1 consecutive years.

Volatility and Risk

ZIM Integrated Shipping Services has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Tsakos Energy Navigation has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500.

Valuation and Earnings

This table compares ZIM Integrated Shipping Services and Tsakos Energy Navigation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM Integrated Shipping Services	$6.90 billion	0.42	$479.20 million	$0.81	30.06
Tsakos Energy Navigation	$798.69 million	1.42	$160.90 million	$6.14	6.13

ZIM Integrated Shipping Services has higher revenue and earnings than Tsakos Energy Navigation. Tsakos Energy Navigation is trading at a lower price-to-earnings ratio than ZIM Integrated Shipping Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ZIM Integrated Shipping Services and Tsakos Energy Navigation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	1.56%	-0.26%	-0.09%
Tsakos Energy Navigation	24.81%	23.26%	10.93%

Analyst Ratings

This is a summary of current recommendations and price targets for ZIM Integrated Shipping Services and Tsakos Energy Navigation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	2	4	0	2	2.25
Tsakos Energy Navigation	0	3	1	0	2.25

ZIM Integrated Shipping Services presently has a consensus target price of $19.33, suggesting a potential downside of 20.59%. Tsakos Energy Navigation has a consensus target price of $29.50, suggesting a potential downside of 21.66%. Given ZIM Integrated Shipping Services’ higher probable upside, analysts clearly believe ZIM Integrated Shipping Services is more favorable than Tsakos Energy Navigation.

Summary

ZIM Integrated Shipping Services beats Tsakos Energy Navigation on 9 of the 17 factors compared between the two stocks.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, Greece.