Head to Head Comparison: SFL (NYSE:SFL) versus Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY)

Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and SFL (NYSE:SFL) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.7%. SFL pays an annual dividend of $0.80 per share and has a dividend yield of 7.4%. Nippon Yusen Kabushiki Kaisha pays out 26.4% of its earnings in the form of a dividend. SFL pays out -400.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SFL has increased its dividend for 1 consecutive years. SFL is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Nippon Yusen Kabushiki Kaisha has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, SFL has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nippon Yusen Kabushiki Kaisha and SFL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00
SFL	0	1	1	0	2.50

SFL has a consensus target price of $12.00, suggesting a potential upside of 11.06%. Given SFL’s stronger consensus rating and higher possible upside, analysts plainly believe SFL is more favorable than Nippon Yusen Kabushiki Kaisha.

Insider & Institutional Ownership

28.6% of SFL shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and SFL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Yusen Kabushiki Kaisha	9.44%	7.26%	4.72%
SFL	-3.61%	-0.30%	-0.08%

Earnings and Valuation

This table compares Nippon Yusen Kabushiki Kaisha and SFL”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha	$17.00 billion	0.89	$1.51 billion	$0.72	9.71
SFL	$719.75 million	2.19	-$26.43 million	($0.20)	-54.03

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than SFL. SFL is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About SFL

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs. As of December 31, 2023, the company owned seven crude oil carriers, six oil product tankers, 15 dry bulk carriers, 32 container vessels, one jack-up drilling rig, one ultra-deepwater drilling rig, and five car carriers. It primarily operates in Bermuda, Canada, Cyprus, Liberia, Namibia, Norway, Singapore, the United Kingdom, and the Marshall Islands. The company was formerly known as Ship Finance International Limited and changed its name to SFL Corporation Ltd. in September 2019. SFL Corporation Ltd. was founded in 2003 and is based in Hamilton, Bermuda.