Analyzing Scorpio Tankers (NYSE:STNG) and NACCO Industries (NYSE:NC)

NACCO Industries (NYSE:NC) and Scorpio Tankers (NYSE:STNG) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NACCO Industries	6.21%	4.00%	2.60%
Scorpio Tankers	67.16%	16.43%	13.14%

Volatility & Risk

NACCO Industries has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for NACCO Industries and Scorpio Tankers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NACCO Industries	0	1	0	0	2.00
Scorpio Tankers	1	5	5	0	2.36

Scorpio Tankers has a consensus price target of $91.57, indicating a potential upside of 5.17%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Scorpio Tankers is more favorable than NACCO Industries.

Valuation and Earnings

This table compares NACCO Industries 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
NACCO Industries	$277.20 million	1.02	$17.57 million	$2.30	16.21
Scorpio Tankers	$938.22 million	4.68	$344.29 million	$16.01	5.44

Scorpio Tankers has higher revenue and earnings than NACCO Industries. Scorpio Tankers is trading at a lower price-to-earnings ratio than NACCO Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

49.1% of NACCO Industries shares are owned by institutional investors. Comparatively, 54.6% of Scorpio Tankers shares are owned by institutional investors. 44.8% of NACCO Industries shares are owned by insiders. Comparatively, 7.3% of Scorpio Tankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

NACCO Industries pays an annual dividend of $1.05 per share and has a dividend yield of 2.8%. Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. NACCO Industries pays out 45.7% of its earnings in the form of a dividend. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NACCO Industries has increased its dividend for 1 consecutive years and Scorpio Tankers has increased its dividend for 2 consecutive years.

Summary

Scorpio Tankers beats NACCO Industries on 13 of the 17 factors compared between the two stocks.

About NACCO Industries

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

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.