TOP SHIPS (NASDAQ:TOPS) and Teekay (NYSE:TK) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Risk and Volatility

TOP SHIPS has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500. Comparatively, Teekay has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares TOP SHIPS and Teekay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TOP SHIPS N/A N/A N/A
Teekay -8.34% -1.39% -0.47%

Earnings and Valuation

This table compares TOP SHIPS and Teekay’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TOP SHIPS $41.05 million 0.27 -$11.13 million N/A N/A
Teekay $1.71 billion 0.20 -$79.24 million ($0.53) -6.47

TOP SHIPS has higher earnings, but lower revenue than Teekay.

Insider and Institutional Ownership

0.2% of TOP SHIPS shares are owned by institutional investors. Comparatively, 21.0% of Teekay shares are owned by institutional investors. 2.4% of Teekay 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

Teekay pays an annual dividend of $0.11 per share and has a dividend yield of 3.2%. TOP SHIPS does not pay a dividend. Teekay pays out -20.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for TOP SHIPS and Teekay, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TOP SHIPS 0 0 1 0 3.00
Teekay 0 2 1 0 2.33

TOP SHIPS currently has a consensus price target of $1.00, suggesting a potential upside of 185.71%. Teekay has a consensus price target of $6.67, suggesting a potential upside of 94.36%. Given TOP SHIPS’s stronger consensus rating and higher probable upside, analysts clearly believe TOP SHIPS is more favorable than Teekay.

Summary

TOP SHIPS beats Teekay on 7 of the 13 factors compared between the two stocks.

About TOP SHIPS

Top Ships Inc. owns and operates tanker vessels worldwide. The company's medium range tanker vessels transport crude oil, petroleum products, and bulk liquid chemicals. As of December 31, 2018, it had a fleet of two bareboat chartered-in 50,000 deadweight ton (dwt) product/chemical tankers vessels, the M/T Stenaweco Energy and the M/T Stenaweco Evolution; two 39,000 dwt product/chemical tankers vessels, the M/T Eco Fleet and the M/T Eco Revolution; six 50,000 dwt product/chemical tankers, the M/T Stenaweco Excellence, M/T Nord Valiant, M/T Stenaweco Elegance, the M/T Eco Palm Desert, the M/T Eco California, and the M/T Eco Marina Del Ray; two 50,000 dwt product/chemical tankers, the M/T Eco Holmby Hills and the M/T Palm Springs; and a 157,000 dwt Suezmax vessel M/T Eco Bel Air. The company was formerly known as Top Tankers Inc. and changed its name to Top Ships Inc. in December 2007. Top Ships Inc. was founded in 2000 and is based in Maroussi, Greece.

About Teekay

Teekay Corporation provides crude oil and gas marine transportation; offshore oil production; and storage and offloading services in Bermuda and internationally. It operates shuttle tankers; floating production, storage, and offloading units; floating storage and offloading units; HiLoad dynamic positioning units; long-distance towing and offshore installation vessels; and conventional tankers. As of December 31, 2018, its fleet consisted of 155 vessels. The company serves energy and utility companies, oil traders, large oil and LNG consumers, petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is based in Hamilton, Bermuda.

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