Flex LNG (NYSE:FLNG) versus OceanPal (NASDAQ:OP) Financial Analysis

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

Dividends

OceanPal pays an annual dividend of $2.00 per share and has a dividend yield of 25.5%. Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 10.5%. OceanPal pays out -3.0% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

OceanPal has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Analyst Ratings

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

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

Flex LNG has a consensus price target of $24.00, indicating a potential downside of 16.06%. Given Flex LNG’s stronger consensus rating and higher probable upside, analysts clearly believe Flex LNG is more favorable than OceanPal.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OceanPal	$5.88 billion	0.01	-$17.86 million	($66.00)	-0.12
Flex LNG	$347.64 million	4.45	$74.82 million	$1.40	20.42

Flex LNG has lower revenue, but higher earnings 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.

Profitability

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

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

Summary

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

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.

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.