TRMD vs. SBLK, ZIM, DHT, SFL, CDLR, LPG, CMRE, STNG, DAC, and NMM
Should you be buying TORM stock or one of its competitors? The main competitors of TORM include Star Bulk Carriers (SBLK), ZIM Integrated Shipping Services (ZIM), DHT (DHT), SFL (SFL), Cadeler A/S (CDLR), Dorian LPG (LPG), Costamare (CMRE), Scorpio Tankers (STNG), Danaos (DAC), and Navios Maritime Partners (NMM). These companies are all part of the "deep sea foreign transportation of freight" industry.
Star Bulk Carriers (NASDAQ:SBLK) and TORM (NASDAQ:TRMD) are both mid-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their risk, media sentiment, community ranking, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
TORM has a net margin of 42.64% compared to TORM's net margin of 20.57%. Star Bulk Carriers' return on equity of 36.99% beat TORM's return on equity.
TORM has higher revenue and earnings than Star Bulk Carriers. TORM is trading at a lower price-to-earnings ratio than Star Bulk Carriers, indicating that it is currently the more affordable of the two stocks.
Star Bulk Carriers has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, TORM has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.
Star Bulk Carriers received 475 more outperform votes than TORM when rated by MarketBeat users. Likewise, 70.59% of users gave Star Bulk Carriers an outperform vote while only 35.71% of users gave TORM an outperform vote.
Star Bulk Carriers presently has a consensus price target of $31.00, indicating a potential upside of 14.10%. Given TORM's higher possible upside, equities analysts clearly believe Star Bulk Carriers is more favorable than TORM.
In the previous week, Star Bulk Carriers had 11 more articles in the media than TORM. MarketBeat recorded 13 mentions for Star Bulk Carriers and 2 mentions for TORM. Star Bulk Carriers' average media sentiment score of 1.58 beat TORM's score of 0.39 indicating that TORM is being referred to more favorably in the news media.
Star Bulk Carriers pays an annual dividend of $1.80 per share and has a dividend yield of 6.6%. TORM pays an annual dividend of $4.38 per share and has a dividend yield of 11.8%. Star Bulk Carriers pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TORM pays out 58.7% of its earnings in the form of a dividend. TORM is clearly the better dividend stock, given its higher yield and lower payout ratio.
33.9% of Star Bulk Carriers shares are owned by institutional investors. Comparatively, 73.9% of TORM shares are owned by institutional investors. 0.9% of Star Bulk Carriers shares are owned by company insiders. Comparatively, 0.4% of TORM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
TORM beats Star Bulk Carriers on 10 of the 19 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding TRMD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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