Reviewing International Seaways (NYSE:INSW) and Torm (NASDAQ:TRMD)

Torm (NASDAQ:TRMD) and International Seaways (NYSE:INSW) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

73.9% of Torm shares are held by institutional investors. Comparatively, 67.3% of International Seaways shares are held by institutional investors. 0.4% of Torm shares are held by insiders. Comparatively, 2.0% of International Seaways shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Torm and International Seaways, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torm	1	2	1	1	2.40
International Seaways	0	2	2	1	2.80

Torm currently has a consensus price target of $23.00, indicating a potential upside of 18.62%. International Seaways has a consensus price target of $52.67, indicating a potential upside of 9.87%. Given Torm’s higher possible upside, equities analysts plainly believe Torm is more favorable than International Seaways.

Earnings and Valuation

This table compares Torm and International Seaways”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torm	$1.56 billion	1.17	$612.50 million	$2.72	7.13
International Seaways	$951.61 million	2.49	$416.72 million	$4.39	10.92

Torm has higher revenue and earnings than International Seaways. Torm is trading at a lower price-to-earnings ratio than International Seaways, indicating that it is currently the more affordable of the two stocks.

Dividends

Torm pays an annual dividend of $1.81 per share and has a dividend yield of 9.3%. International Seaways pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Torm pays out 66.5% of its earnings in the form of a dividend. International Seaways pays out 10.9% 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.

Volatility and Risk

Torm has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, International Seaways has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500.

Profitability

This table compares Torm and International Seaways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torm	21.37%	13.03%	8.15%
International Seaways	28.26%	10.13%	7.30%

About Torm

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.

About International Seaways

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.