Head to Head Contrast: Torm (NASDAQ:TRMD) and COSCO SHIPPING (OTCMKTS:CICOY)

Torm (NASDAQ:TRMD) and COSCO SHIPPING (OTCMKTS:CICOY) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

Torm pays an annual dividend of $2.04 per share and has a dividend yield of 7.9%. COSCO SHIPPING pays an annual dividend of $0.57 per share and has a dividend yield of 5.8%. Torm pays out 71.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Torm and COSCO SHIPPING”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.34 billion	1.80	$285.30 million	$2.84	9.05
COSCO SHIPPING	$30.54 billion	1.01	$4.29 billion	N/A	N/A

COSCO SHIPPING has higher revenue and earnings than Torm.

Profitability

This table compares Torm and COSCO SHIPPING’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torm	21.29%	13.26%	8.48%
COSCO SHIPPING	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Torm and COSCO SHIPPING, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	1	2	1	1	2.40
COSCO SHIPPING	2	2	0	0	1.50

Torm currently has a consensus target price of $34.00, indicating a potential upside of 32.24%. Given Torm’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Torm is more favorable than COSCO SHIPPING.

Insider and Institutional Ownership

73.9% of Torm shares are held by institutional investors. 0.4% of Torm shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Torm has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500. Comparatively, COSCO SHIPPING has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Torm beats COSCO SHIPPING on 11 of the 15 factors compared between the two stocks.

About Torm

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.

About COSCO SHIPPING

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.