Dorian LPG (NYSE: LPG) and Gener8 Maritime (NYSE:GNRT) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dorian LPG and Gener8 Maritime, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorian LPG 0 1 1 0 2.50
Gener8 Maritime 0 0 1 0 3.00

Dorian LPG presently has a consensus price target of $10.00, suggesting a potential upside of 30.04%. Gener8 Maritime has a consensus price target of $10.00, suggesting a potential upside of 111.86%. Given Gener8 Maritime’s stronger consensus rating and higher probable upside, analysts clearly believe Gener8 Maritime is more favorable than Dorian LPG.

Earnings and Valuation

This table compares Dorian LPG and Gener8 Maritime’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Dorian LPG $167.45 million 2.53 -$1.44 million ($0.21) -36.62
Gener8 Maritime $404.62 million 0.97 $67.30 million ($1.41) -3.35

Gener8 Maritime has higher revenue and earnings than Dorian LPG. Dorian LPG is trading at a lower price-to-earnings ratio than Gener8 Maritime, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dorian LPG has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Gener8 Maritime has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Institutional & Insider Ownership

46.9% of Dorian LPG shares are held by institutional investors. Comparatively, 76.1% of Gener8 Maritime shares are held by institutional investors. 26.5% of Dorian LPG shares are held by insiders. Comparatively, 13.7% of Gener8 Maritime shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Dorian LPG and Gener8 Maritime’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorian LPG -7.30% -4.06% -2.28%
Gener8 Maritime -34.10% 1.16% 0.56%

Summary

Gener8 Maritime beats Dorian LPG on 8 of the 12 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd. is a holding company. The Company, through its subsidiaries, is focused on owning and operating very large gas carrier (VLGCs) in the liquefied petroleum gas (LPG) shipping industry. The Company is engaged in the transportation of LPG across the world through its ownership and operation of LPG tankers. As of March 31, 2016, the Company owned and operated a fleet of 22 VLGCs, including 19 84,000 cubic meter (cbm) ECO-design VLGCs (ECO VLGCs) and three 82,000 cbm VLGCs. The VLGCs in its fleet had an aggregate carrying capacity of approximately 1.8 million cbm at May 26, 2016. It provides in-house commercial and technical management services for all of its vessels. As of May 26, 2016, its VLGCs included Captain Nicholas ML; Captain John NP; Comet; Corsair; Corvette; Cougar; Concorde; Cobra; Continental; Commodore; Constellation; Cheyenne; Cratis; Chaparral; Commander, and Challenger. The Company’s customers include global energy companies, commodity traders and importers.

About Gener8 Maritime

Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.

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