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

Profitability

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

Net Margins Return on Equity Return on Assets
Gener8 Maritime -34.10% 1.16% 0.56%
DHT 9.68% 4.84% 2.47%

Analyst Recommendations

This is a breakdown of recent recommendations for Gener8 Maritime and DHT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gener8 Maritime 0 0 1 0 3.00
DHT 0 1 2 0 2.67

Gener8 Maritime currently has a consensus target price of $10.00, indicating a potential upside of 125.23%. DHT has a consensus target price of $6.00, indicating a potential upside of 69.73%. Given Gener8 Maritime’s stronger consensus rating and higher possible upside, equities analysts plainly believe Gener8 Maritime is more favorable than DHT.

Insider & Institutional Ownership

76.0% of Gener8 Maritime shares are held by institutional investors. Comparatively, 35.7% of DHT shares are held by institutional investors. 13.7% of Gener8 Maritime shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Gener8 Maritime and DHT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gener8 Maritime $404.62 million 0.91 $67.30 million ($1.41) -3.15
DHT $290.70 million 1.73 $9.25 million $0.33 10.71

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

Dividends

DHT pays an annual dividend of $0.08 per share and has a dividend yield of 2.3%. Gener8 Maritime does not pay a dividend. DHT pays out 24.2% of its earnings in the form of a dividend. Gener8 Maritime has increased its dividend for 2 consecutive years.

Risk & Volatility

Gener8 Maritime has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, DHT has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Summary

Gener8 Maritime beats DHT on 10 of the 17 factors compared between the two stocks.

Gener8 Maritime Company Profile

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.

DHT Company Profile

DHT Holdings, Inc. operates a fleet of crude oil tankers. As of March 21, 2017, the Company’s fleet consisted of 21 crude oil tankers in operation. As of March 21, 2017, the Company’s fleet consisted of 19 very large crude carriers (VLCCs), which are tankers ranging in size from 200,000 to 320,000 deadweight tons (dwt), and two Aframax tankers (Aframaxes), which are tankers ranging in size from 80,000 to 120,000 dwt. As of December 31, 2016, the Company’s fleet in operation had a combined carrying capacity of 6,087,095 dwt. As of March 21, 2017, the Company’s VLCCs included DHT Ann, DHT Eagle, DHT Phoenix, DHT Hawk, DHT Condor, DHT Scandinavia, DHT China, DHT Amazon, DHT Redwood, DHT Sundarbans, DHT Taiga, DHT Leopard, DHT Lion, DHT Panther and DHT Puma. As of March 21, 2017, the Company’s Aframaxes are DHT Cathy and DHT Sophie.

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