Keppel (OTCMKTS:KPELY) & Scorpio Tankers (NYSE:STNG) Critical Contrast

Keppel (OTCMKTS:KPELY) and Scorpio Tankers (NYSE:STNG) are both transportation companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Institutional and Insider Ownership

54.6% of Scorpio Tankers shares are held by institutional investors. 7.3% of Scorpio Tankers shares are held by company 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 and Risk

Keppel has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Keppel and Scorpio Tankers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel	0	0	1	0	3.00
Scorpio Tankers	0	3	6	1	2.80

Scorpio Tankers has a consensus price target of $93.17, indicating a potential upside of 11.41%. Given Scorpio Tankers’ higher probable upside, analysts clearly believe Scorpio Tankers is more favorable than Keppel.

Profitability

This table compares Keppel and Scorpio Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel	N/A	N/A	N/A
Scorpio Tankers	48.44%	11.72%	9.28%

Dividends

Keppel pays an annual dividend of $0.60 per share and has a dividend yield of 3.7%. Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Scorpio Tankers pays out 17.7% of its earnings in the form of a dividend. Scorpio Tankers has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Keppel and Scorpio Tankers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel	$4.58 billion	3.25	$603.62 million	N/A	N/A
Scorpio Tankers	$938.22 million	4.49	$344.29 million	$10.17	8.22

Keppel has higher revenue and earnings than Scorpio Tankers.

Summary

Scorpio Tankers beats Keppel on 10 of the 16 factors compared between the two stocks.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.