Financial Review: Teekay Tankers (NYSE:TNK) and Paragon Shipping (OTCMKTS:PRGNF)

Teekay Tankers (NYSE:TNK) and Paragon Shipping (OTCMKTS:PRGNF) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Teekay Tankers and Paragon Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	42.60%	16.86%	15.30%
Paragon Shipping	N/A	N/A	N/A

Earnings & Valuation

This table compares Teekay Tankers and Paragon Shipping”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	2.80	$351.19 million	$10.09	7.64
Paragon Shipping	N/A	N/A	N/A	N/A	N/A

Teekay Tankers has higher revenue and earnings than Paragon Shipping.

Volatility and Risk

Teekay Tankers has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500. Comparatively, Paragon Shipping has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Institutional & Insider Ownership

52.7% of Teekay Tankers shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Teekay Tankers and Paragon Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	0	3	3	1	2.71
Paragon Shipping	0	0	0	0	0.00

Teekay Tankers presently has a consensus price target of $78.00, suggesting a potential upside of 1.12%. Given Teekay Tankers’ stronger consensus rating and higher possible upside, research analysts plainly believe Teekay Tankers is more favorable than Paragon Shipping.

Summary

Teekay Tankers beats Paragon Shipping on 11 of the 11 factors compared between the two stocks.

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.

About Paragon Shipping

Paragon Shipping Inc. provides shipping transportation services worldwide. It engages in the ocean transportation of drybulk cargoes, including commodities, such as iron ore, coal, grain, and other materials. Paragon Shipping Inc. was founded in 2006 and is based in Voula, Greece.