Nordic American Offshore (NYSE: NAO) and Overseas Shipholding Group (NYSE:OSG) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

26.7% of Nordic American Offshore shares are owned by institutional investors. Comparatively, 62.1% of Overseas Shipholding Group shares are owned by institutional investors. 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

Nordic American Offshore has a beta of -0.23, meaning that its stock price is 123% less volatile than the S&P 500. Comparatively, Overseas Shipholding Group has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nordic American Offshore and Overseas Shipholding Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordic American Offshore 0 0 0 0 N/A
Overseas Shipholding Group 0 0 0 0 N/A

Profitability

This table compares Nordic American Offshore and Overseas Shipholding Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordic American Offshore -249.97% -13.23% -8.54%
Overseas Shipholding Group -71.11% 10.95% 4.39%

Earnings & Valuation

This table compares Nordic American Offshore and Overseas Shipholding Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nordic American Offshore $14.92 million 2.18 -$13.42 million ($1.26) -1.14
Overseas Shipholding Group $433.30 million 0.44 $125.13 million ($4.15) -0.61

Overseas Shipholding Group has higher revenue and earnings than Nordic American Offshore. Nordic American Offshore is trading at a lower price-to-earnings ratio than Overseas Shipholding Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Nordic American Offshore pays an annual dividend of $0.08 per share and has a dividend yield of 5.6%. Overseas Shipholding Group does not pay a dividend. Nordic American Offshore pays out -6.3% of its earnings in the form of a dividend.

Summary

Overseas Shipholding Group beats Nordic American Offshore on 7 of the 11 factors compared between the two stocks.

About Nordic American Offshore

Nordic American Offshore Limited (NAO) operates platform supply vessels (PSV). The Company owns approximately eight vessels. The Company operates in the offshore support vessel market segment. The Company has approximately two vessels under construction. The Company’s vessels operate in the North Sea in both the term and spot market. The Company’s vessels include NAO Fighter, NAO Prosper, NAO Power, NAO Thunder, NAO Guardian, NAO Protector, NAO Storm and NAO Viking. Each of the Company’s vessels has a capacity of approximately 4,200 deadweight tonnage (DWT) and a cargo deck area of approximately 850 square meters. The Company’s vessels under construction include NAO Galaxy and NAO Horizon. Remoy Shipping AS and V. Ships Limited provide technical management for the Company’s vessels.

About Overseas Shipholding Group

Overseas Shipholding Group, Inc. (OSG) is a tanker company engaged primarily in the ocean transportation of crude oil and petroleum products. The Company’s vessel operations are organized into strategic business units and focused on market segments: crude oil, refined petroleum products and the United States Flag. The International Flag Crude Tanker unit manages International Flag ultra large crude carrier (ULCC), very large crude carrier (VLCC), Suezmax, Aframax, Panamax and Lightering tankers; the International Flag Product Carrier unit principally manages LR1 and MR product carriers and the United States unit manages the Company’s United States Flag vessels. In August 2014, the Company announced that it has emerged from Chapter 11 as a newly reorganized company.

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