Toro (NASDAQ:TORO – Get Free Report) and Danaos (NYSE:DAC – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Toro and Danaos’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Toro | 179.23% | 66.54% | 31.71% |
Danaos | 59.19% | 19.94% | 16.01% |
Valuation and Earnings
This table compares Toro and Danaos’ top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Toro | $78.47 million | 1.08 | $140.64 million | $2.62 | 1.71 |
Danaos | $973.58 million | 1.44 | $576.30 million | $28.96 | 2.49 |
Analyst Recommendations
This is a summary of current recommendations for Toro and Danaos, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Toro | 0 | 0 | 0 | 0 | N/A |
Danaos | 0 | 0 | 1 | 0 | 3.00 |
Danaos has a consensus price target of $90.00, indicating a potential upside of 24.88%. Given Danaos’ higher possible upside, analysts clearly believe Danaos is more favorable than Toro.
Institutional and Insider Ownership
1.7% of Toro shares are held by institutional investors. Comparatively, 19.0% of Danaos shares are held by institutional investors. 41.0% of Danaos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Danaos beats Toro on 9 of the 12 factors compared between the two stocks.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
About Danaos
Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.
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