Critical Survey: Britannia Bulk (OTCMKTS:BBLKF) versus Hafnia (NYSE:HAFN)

Hafnia (NYSE:HAFN) and Britannia Bulk (OTCMKTS:BBLKF) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Hafnia and Britannia Bulk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	3	0	1	2.50
Britannia Bulk	0	0	0	0	0.00

Given Britannia Bulk’s higher probable upside, analysts plainly believe Britannia Bulk is more favorable than Hafnia.

Valuation and Earnings

This table compares Hafnia and Britannia Bulk”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$955.87 million	3.89	$339.68 million	$0.91	7.97
Britannia Bulk	N/A	N/A	N/A	N/A	N/A

Hafnia has higher revenue and earnings than Britannia Bulk.

Risk and Volatility

Hafnia has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Britannia Bulk has a beta of 9.52, suggesting that its stock price is 852% more volatile than the S&P 500.

Profitability

This table compares Hafnia and Britannia Bulk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	44.74%	19.20%	12.10%
Britannia Bulk	N/A	N/A	N/A

Summary

Hafnia beats Britannia Bulk on 6 of the 8 factors compared between the two stocks.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.

About Britannia Bulk

Britannia Bulk Holdings Inc., together with its subsidiaries, provides drybulk shipping and maritime logistics services. It primarily transports coal, fertilizers, scrap metals, iron-ore, grain, and other bulk cargoes from the Baltic region to Northern and Western Europe. The company’s logistics services include port modification, fendering, lightening, dredging of berths, maximizing vessel throughput in ports, provision of floating cranes, and self-discharging equipment. The company serves power companies, coal producers, and commodity trading houses. Britannia Bulk Holdings Inc. was formerly known as Britannia Bulk PLC and changed its name to Britannia Bulk Holdings Inc. in June 2008. The company was founded in 1999 and is headquartered in London, the United Kingdom. As of 2010, Britannia Bulk Holdings Inc. is in liquidation.