Critical Survey: Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and Okeanis Eco Tankers (NYSE:ECO)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Nippon Yusen Kabushiki Kaisha and Okeanis Eco Tankers, 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
Okeanis Eco Tankers	0	5	2	0	2.29

Okeanis Eco Tankers has a consensus price target of $51.89, suggesting a potential downside of 3.67%. Given Okeanis Eco Tankers’ stronger consensus rating and higher probable upside, analysts clearly believe Okeanis Eco Tankers is more favorable than Nippon Yusen Kabushiki Kaisha.

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.7%. Okeanis Eco Tankers pays an annual dividend of $8.00 per share and has a dividend yield of 14.9%. Nippon Yusen Kabushiki Kaisha pays out 28.4% of its earnings in the form of a dividend. Okeanis Eco Tankers pays out 141.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and Okeanis Eco Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Yusen Kabushiki Kaisha	8.73%	5.60%	3.51%
Okeanis Eco Tankers	41.26%	37.13%	16.69%

Volatility & Risk

Nippon Yusen Kabushiki Kaisha has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Okeanis Eco Tankers has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nippon Yusen Kabushiki Kaisha and Okeanis Eco Tankers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha	$16.10 billion	0.89	$1.40 billion	$0.67	10.55
Okeanis Eco Tankers	$391.55 million	5.37	$122.95 million	$5.66	9.52

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Okeanis Eco Tankers. Okeanis Eco Tankers 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.

Summary

Okeanis Eco Tankers beats Nippon Yusen Kabushiki Kaisha on 9 of the 14 factors compared between 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 Okeanis Eco Tankers

Okeanis Eco Tankers Corp., a shipping company, owns and operates tanker vessels worldwide. It operates a fleet of 14 tanker vessels comprising six modern Suezmax tankers and eight modern VLCC tankers focusing on the transportation of crude oil. The company was incorporated in 2018 and is based in Neo Faliro, Greece.