Financial Analysis: Tsakos Energy Navigation (TNP) versus Costamare (CMRE)
Tsakos Energy Navigation (NYSE: TNP) and Costamare (NYSE:CMRE) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Volatility & Risk
Tsakos Energy Navigation has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Costamare has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.
This is a summary of recent recommendations for Tsakos Energy Navigation and Costamare, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tsakos Energy Navigation||0||2||6||0||2.75|
Tsakos Energy Navigation presently has a consensus target price of $5.57, suggesting a potential upside of 22.18%. Costamare has a consensus target price of $7.30, suggesting a potential upside of 21.46%. Given Tsakos Energy Navigation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tsakos Energy Navigation is more favorable than Costamare.
Valuation and Earnings
This table compares Tsakos Energy Navigation and Costamare’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tsakos Energy Navigation||$510.27 million||0.75||$201.85 million||$0.21||21.72|
|Costamare||$438.93 million||1.45||$280.04 million||$0.38||15.82|
Costamare has higher revenue, but lower earnings than Tsakos Energy Navigation. Costamare is trading at a lower price-to-earnings ratio than Tsakos Energy Navigation, indicating that it is currently the more affordable of the two stocks.
This table compares Tsakos Energy Navigation and Costamare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tsakos Energy Navigation||6.86%||2.48%||1.07%|
Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 4.4%. Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.7%. Tsakos Energy Navigation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Costamare pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
26.0% of Tsakos Energy Navigation shares are owned by institutional investors. Comparatively, 27.0% of Costamare shares are owned by institutional investors. 1.0% of Tsakos Energy Navigation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Costamare beats Tsakos Energy Navigation on 9 of the 16 factors compared between the two stocks.
Tsakos Energy Navigation Company Profile
Tsakos Energy Navigation Ltd is a provider of international seaborne crude oil and petroleum product transportation services. The Company operates through maritime transportation of liquid energy related products segment. It operates a fleet of approximately 57 modern crude oil and petroleum product tankers that provide marine transportation services for national and other independent oil companies and refiners under long, medium and short-term charters. Its fleet also includes a liquefied natural gas (LNG) carrier and over two shuttle suezmax tankers with dynamic positioning technology (DP2). This fleet diversity includes a range of sister ships. The Company’s fleet consists of 65 double-hull vessels totaling 7.2 million deadweight tonnage. Its diversified fleet, which includes VLCC, suezmax, aframax, panamax, handysize, handymax tankers, LNG carrier and DP2 shuttle tankers, allows it to serve its customers’ international petroleum product and crude oil transportation needs.
Costamare Company Profile
Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.
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