Critical Analysis: Dorian LPG (NYSE:LPG) & Okeanis Eco Tankers (NYSE:ECO)

Okeanis Eco Tankers (NYSE:ECO) and Dorian LPG (NYSE:LPG) are both small-cap 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.

Earnings and Valuation

This table compares Okeanis Eco Tankers and Dorian LPG”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okeanis Eco Tankers	$399.71 million	1.75	$145.25 million	$3.38	6.41
Dorian LPG	$418.84 million	2.10	$307.45 million	$3.93	5.24

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

Dividends

Okeanis Eco Tankers pays an annual dividend of $1.40 per share and has a dividend yield of 6.5%. Dorian LPG pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. Okeanis Eco Tankers pays out 41.4% of its earnings in the form of a dividend. Dorian LPG pays out 25.4% 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.

Insider and Institutional Ownership

62.5% of Dorian LPG shares are held by institutional investors. 13.4% of Dorian LPG 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.

Profitability

This table compares Okeanis Eco Tankers and Dorian LPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okeanis Eco Tankers	27.68%	25.40%	9.58%
Dorian LPG	38.51%	15.14%	8.76%

Analyst Ratings

This is a breakdown of recent recommendations for Okeanis Eco Tankers and Dorian LPG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okeanis Eco Tankers	0	0	1	0	3.00
Dorian LPG	0	0	3	0	3.00

Okeanis Eco Tankers currently has a consensus target price of $40.00, indicating a potential upside of 84.58%. Dorian LPG has a consensus target price of $43.50, indicating a potential upside of 111.27%. Given Dorian LPG’s higher possible upside, analysts plainly believe Dorian LPG is more favorable than Okeanis Eco Tankers.

Summary

Dorian LPG beats Okeanis Eco Tankers on 10 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 Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.