International Seaways (NYSE:INSW) versus Freehold Royalties (OTCMKTS:FRHLF) Head-To-Head Comparison

Freehold Royalties (OTCMKTS:FRHLF) and International Seaways (NYSE:INSW) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Freehold Royalties and International Seaways, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freehold Royalties	0	5	0	0	2.00
International Seaways	0	2	6	0	2.75

International Seaways has a consensus target price of $109.80, indicating a potential upside of 8.22%. Given International Seaways’ stronger consensus rating and higher possible upside, analysts plainly believe International Seaways is more favorable than Freehold Royalties.

Earnings & Valuation

This table compares Freehold Royalties and International Seaways”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freehold Royalties	$224.34 million	8.84	$65.69 million	$0.61	19.84
International Seaways	$843.30 million	6.15	$309.26 million	$21.12	4.80

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

Dividends

Freehold Royalties pays an annual dividend of $0.76 per share and has a dividend yield of 6.3%. International Seaways pays an annual dividend of $20.20 per share and has a dividend yield of 19.9%. Freehold Royalties pays out 124.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Seaways pays out 95.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Seaways is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freehold Royalties	43.88%	15.19%	10.97%
International Seaways	68.19%	40.81%	30.77%

Institutional & Insider Ownership

67.3% of International Seaways shares are held by institutional investors. 1.7% of International Seaways shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

International Seaways beats Freehold Royalties on 13 of the 15 factors compared between the two stocks.

About Freehold Royalties

Freehold Royalties Ltd. is a Canadian royalty company focused on owning oil and natural gas interests rather than directly operating wells. It earns revenue from royalties and other payments tied to production from properties developed and operated by third-party energy companies. The company’s assets include mineral title and royalty interests in oil and natural gas properties, with exposure to crude oil, natural gas and natural gas liquids. Its holdings are concentrated in Western Canada, including the Western Canadian Sedimentary Basin, and also include interests in the United States.

About International Seaways

International Seaways, Inc. is an international owner and operator of oceangoing tanker vessels. The company transports crude oil and refined petroleum products for energy companies and other customers. Its fleet includes crude-oil tankers and product carriers that serve global shipping routes, connecting oil-producing regions with refineries and end markets. International Seaways also uses commercial arrangements such as vessel pools and charter contracts to market its ships. The company became an independent publicly traded business in 2016 after being spun off from Overseas Shipholding Group.