Head-To-Head Comparison: Flex LNG (NYSE:FLNG) and OceanPal (NASDAQ:OP)

Flex LNG (NYSE:FLNG) and OceanPal (NASDAQ:OP) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Dividends

Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 10.0%. OceanPal pays an annual dividend of $2.00 per share and has a dividend yield of 24.1%. Flex LNG pays out 214.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OceanPal pays out -3.0% of its earnings in the form of a dividend. OceanPal is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Flex LNG and OceanPal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex LNG	$347.64 million	4.65	$74.82 million	$1.40	21.35
OceanPal	$5.88 billion	0.01	-$17.86 million	($66.00)	-0.13

Flex LNG has higher earnings, but lower revenue than OceanPal. OceanPal is trading at a lower price-to-earnings ratio than Flex LNG, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Flex LNG has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, OceanPal has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Flex LNG and OceanPal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex LNG	2	2	0	0	1.50
OceanPal	1	0	0	0	1.00

Flex LNG presently has a consensus price target of $24.00, indicating a potential downside of 19.70%. Given Flex LNG’s stronger consensus rating and higher possible upside, research analysts plainly believe Flex LNG is more favorable than OceanPal.

Profitability

This table compares Flex LNG and OceanPal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex LNG	22.26%	12.15%	3.37%
OceanPal	N/A	N/A	N/A

Summary

Flex LNG beats OceanPal on 9 of the 13 factors compared between the two stocks.

About Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.

About OceanPal

OceanPal Inc. provides ocean-going transportation services worldwide. The company owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal, and grains, as well as minor bulks, including bauxite, phosphate, and fertilizers. As of December 31, 2023, its fleet consisted of five dry bulk carriers, which include three Panamaxes and two Capesize vessels with a cargo carrying capacity of approximately 572,599 deadweight tons. The company was incorporated in 2021 and is based in Athens, Greece.