Danaos (NYSE:DAC) vs. Tsakos Energy Navigation (NYSE:TEN) Head-To-Head Analysis

Danaos (NYSE:DAC) and Tsakos Energy Navigation (NYSE:TEN) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

19.0% of Danaos shares are held by institutional investors. Comparatively, 19.2% of Tsakos Energy Navigation shares are held by institutional investors. 41.0% of Danaos shares are held by insiders. Comparatively, 1.0% of Tsakos Energy Navigation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Danaos pays an annual dividend of $4.00 per share and has a dividend yield of 2.6%. Tsakos Energy Navigation pays an annual dividend of $2.00 per share and has a dividend yield of 4.3%. Danaos pays out 13.5% of its earnings in the form of a dividend. Tsakos Energy Navigation pays out 20.3% 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. Danaos has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of current recommendations for Danaos and Tsakos Energy Navigation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	0	0	3	4.00
Tsakos Energy Navigation	0	1	2	0	2.67

Tsakos Energy Navigation has a consensus price target of $29.50, indicating a potential downside of 37.10%. Given Tsakos Energy Navigation’s higher probable upside, analysts clearly believe Tsakos Energy Navigation is more favorable than Danaos.

Profitability

This table compares Danaos and Tsakos Energy Navigation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaos	51.26%	13.20%	10.08%
Tsakos Energy Navigation	33.81%	29.44%	13.76%

Volatility & Risk

Danaos has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Tsakos Energy Navigation has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500.

Earnings & Valuation

This table compares Danaos and Tsakos Energy Navigation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$1.04 billion	2.65	$494.61 million	$29.55	5.14
Tsakos Energy Navigation	$798.69 million	1.77	$160.90 million	$9.87	4.75

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

Summary

Danaos beats Tsakos Energy Navigation on 12 of the 18 factors compared between the two stocks.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, Greece.