Analyzing Flex LNG (NYSE:FLNG) and Icon Energy (NASDAQ:ICON)

Flex LNG (NYSE:FLNG) and Icon Energy (NASDAQ:ICON) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Flex LNG and Icon Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex LNG	$347.64 million	5.06	$74.82 million	$1.39	23.38
Icon Energy	$11.26 million	0.07	-$4.20 million	($23.65)	-0.05

Flex LNG has higher revenue and earnings than Icon Energy. Icon Energy is trading at a lower price-to-earnings ratio than Flex LNG, indicating that it is currently the more affordable of the two stocks.

Dividends

Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 9.2%. Icon Energy pays an annual dividend of $0.35 per share and has a dividend yield of 30.3%. Flex LNG pays out 215.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Icon Energy pays out -1.5% of its earnings in the form of a dividend. Icon Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Flex LNG and Icon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex LNG	21.52%	13.46%	3.83%
Icon Energy	N/A	N/A	N/A

Volatility and Risk

Flex LNG has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Icon Energy has a beta of 5.39, suggesting that its stock price is 439% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Flex LNG and Icon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex LNG	0	2	0	0	2.00
Icon Energy	0	0	0	0	0.00

Flex LNG presently has a consensus price target of $23.00, suggesting a potential downside of 29.24%. Given Flex LNG’s stronger consensus rating and higher probable upside, equities analysts plainly believe Flex LNG is more favorable than Icon Energy.

Summary

Flex LNG beats Icon Energy on 10 of the 13 factors compared between the two stocks.

About Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.

About Icon Energy

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).