Teekay (TK) & Euroseas (ESEA) Critical Comparison

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

Valuation and Earnings

This table compares Teekay and Euroseas’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teekay $1.88 billion 0.41 -$163.27 million ($1.38) -5.62
Euroseas $42.92 million 0.41 -$6.09 million N/A N/A

Euroseas has lower revenue, but higher earnings than Teekay.

Insider & Institutional Ownership

28.9% of Teekay shares are held by institutional investors. Comparatively, 2.5% of Euroseas shares are held by institutional investors. 2.4% of Teekay shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Teekay and Euroseas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay 1 2 0 0 1.67
Euroseas 0 0 1 0 3.00

Teekay presently has a consensus price target of $7.25, suggesting a potential downside of 6.57%. Euroseas has a consensus price target of $3.00, suggesting a potential upside of 89.87%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts plainly believe Euroseas is more favorable than Teekay.

Dividends

Teekay pays an annual dividend of $0.22 per share and has a dividend yield of 2.8%. Euroseas does not pay a dividend. Teekay pays out -15.9% of its earnings in the form of a dividend.

Risk and Volatility

Teekay has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Teekay and Euroseas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay -7.32% -3.28% -1.11%
Euroseas -15.00% -6.40% -1.91%

Summary

Teekay beats Euroseas on 9 of the 14 factors compared between the two stocks.

Teekay Company Profile

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 storage and offloading (FSO) units, HiLoad dynamic positioning units, and long-distance towing and offshore installation vessels, as well as offers offshore accommodation, storage, and support for maintenance and modification projects. The company also operates floating production, storage, and offloading (FPSO) units, as well as other vessels used to service its FPSO contracts; liquefied natural gas (LNG) and liquefied petroleum gas carriers; and conventional crude oil and product tankers. As of December 31, 2016, its fleet consisted of 214 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.

Euroseas Company Profile

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

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