Star Bulk Carriers (NASDAQ:SBLK – Get Free Report) and Teekay Tankers (NYSE:TNK – Get Free Report) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
Profitability
This table compares Star Bulk Carriers and Teekay Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Bulk Carriers | 5.85% | 2.66% | 1.64% |
| Teekay Tankers | 32.87% | 10.63% | 9.58% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Star Bulk Carriers and Teekay Tankers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Bulk Carriers | 0 | 1 | 1 | 1 | 3.00 |
| Teekay Tankers | 0 | 1 | 3 | 1 | 3.00 |
Insider & Institutional Ownership
33.9% of Star Bulk Carriers shares are owned by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are owned by institutional investors. 0.9% of Star Bulk Carriers shares are owned by insiders. Comparatively, 1.9% of Teekay Tankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Star Bulk Carriers has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.
Dividends
Star Bulk Carriers pays an annual dividend of $0.44 per share and has a dividend yield of 2.1%. Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Star Bulk Carriers pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay Tankers pays out 11.1% of its earnings in the form of a dividend. Teekay Tankers has raised its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Star Bulk Carriers and Teekay Tankers”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Bulk Carriers | $1.27 billion | 1.93 | $304.65 million | $0.52 | 39.90 |
| Teekay Tankers | $951.88 million | 2.14 | $403.67 million | $9.00 | 6.55 |
Teekay Tankers has lower revenue, but higher earnings than Star Bulk Carriers. Teekay Tankers is trading at a lower price-to-earnings ratio than Star Bulk Carriers, indicating that it is currently the more affordable of the two stocks.
Summary
Teekay Tankers beats Star Bulk Carriers on 12 of the 16 factors compared between the two stocks.
About Star Bulk Carriers
Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of bulk commodities, including iron ores, minerals and grains, bauxite, fertilizers, and steel products. As of December 31, 2023, the company owned a fleet of 116 dry bulk vessels with combined carrying capacity of 13.1 million deadweight tonnage (dwt) consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt. Star Bulk Carriers Corp. was incorporated in 2006 and is based in Marousi, Greece.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
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