Analyzing Icon Energy (NASDAQ:ICON) and Flex LNG (NYSE:FLNG)

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

Earnings and Valuation

This table compares Icon Energy and Flex LNG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Icon Energy	$11.26 million	0.09	-$4.20 million	($23.65)	-0.06
Flex LNG	$347.64 million	5.08	$74.82 million	$1.39	23.50

Flex LNG has higher revenue and earnings than Icon Energy. Icon Energy is trading at a lower price-to-earnings ratio than Flex LNG, indicating that it is currently the more affordable of the two stocks.

Dividends

Icon Energy pays an annual dividend of $0.35 per share and has a dividend yield of 25.2%. Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 9.2%. Icon Energy pays out -1.5% of its earnings in the form of a dividend. Flex LNG pays out 215.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Icon Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Icon Energy has a beta of 5.39, suggesting that its share price is 439% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Icon Energy	N/A	N/A	N/A
Flex LNG	21.52%	13.46%	3.83%

Analyst Recommendations

This is a summary of current recommendations and price targets for Icon Energy and Flex LNG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Icon Energy	0	0	0	0	0.00
Flex LNG	0	2	0	0	2.00

Flex LNG has a consensus price target of $23.00, indicating a potential downside of 29.59%. Given Flex LNG’s stronger consensus rating and higher probable upside, analysts clearly believe Flex LNG is more favorable than Icon Energy.

Summary

Flex LNG beats Icon Energy on 10 of the 13 factors compared between the two stocks.

About Icon Energy

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).

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.