Critical Review: Okeanis Eco Tankers (NYSE:ECO) & Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY)

Okeanis Eco Tankers (NYSE:ECO) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Ratings

This is a breakdown of current ratings and target prices for Okeanis Eco Tankers and Nippon Yusen Kabushiki Kaisha, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okeanis Eco Tankers	0	5	2	0	2.29
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Okeanis Eco Tankers currently has a consensus target price of $51.89, indicating a potential downside of 9.17%. Given Okeanis Eco Tankers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Okeanis Eco Tankers is more favorable than Nippon Yusen Kabushiki Kaisha.

Dividends

Okeanis Eco Tankers pays an annual dividend of $8.00 per share and has a dividend yield of 14.0%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.18 per share and has a dividend yield of 2.5%. Okeanis Eco Tankers pays out 141.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nippon Yusen Kabushiki Kaisha pays out 26.9% of its earnings in the form of a dividend.

Volatility and Risk

Okeanis Eco Tankers has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Okeanis Eco Tankers and Nippon Yusen Kabushiki Kaisha”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okeanis Eco Tankers	$391.55 million	5.70	$122.95 million	$5.66	10.09
Nippon Yusen Kabushiki Kaisha	$16.10 billion	0.89	$1.40 billion	$0.67	10.59

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Okeanis Eco Tankers. Okeanis Eco Tankers is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Okeanis Eco Tankers and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okeanis Eco Tankers	41.26%	37.13%	16.69%
Nippon Yusen Kabushiki Kaisha	8.73%	5.60%	3.51%

Summary

Okeanis Eco Tankers beats Nippon Yusen Kabushiki Kaisha on 9 of the 14 factors compared between the two stocks.

About Okeanis Eco Tankers

Okeanis Eco Tankers Corp., a shipping company, owns and operates tanker vessels worldwide. It operates a fleet of 14 tanker vessels comprising six modern Suezmax tankers and eight modern VLCC tankers focusing on the transportation of crude oil. The company was incorporated in 2018 and is based in Neo Faliro, Greece.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.