Reviewing Scorpio Tankers (STNG) & Its Competitors

Scorpio Tankers (NYSE:STNG) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its peers? We will compare Scorpio Tankers to related companies based on the strength of its earnings, valuation, dividends, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Scorpio Tankers pays out 9.5% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -123.1% of their earnings in the form of a dividend. Scorpio Tankers has increased its dividend for 2 consecutive years. Scorpio Tankers lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Scorpio Tankers and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	77.07%	17.06%	13.90%
Scorpio Tankers Competitors	-469.71%	19.37%	6.42%

Valuation and Earnings

This table compares Scorpio Tankers and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	$344.29 million	4.28
Scorpio Tankers Competitors	$11.60 billion	$5.51 billion	-0.45

Scorpio Tankers’ peers have higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Scorpio Tankers and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	1	4	5	1	2.55
Scorpio Tankers Competitors	5970	26964	40817	2413	2.52

Scorpio Tankers presently has a consensus price target of $109.56, suggesting a potential upside of 35.59%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.89%. Given Scorpio Tankers’ stronger consensus rating and higher possible upside, analysts clearly believe Scorpio Tankers is more favorable than its peers.

Risk & Volatility

Scorpio Tankers has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Scorpio Tankers’ peers have a beta of -3.76, suggesting that their average share price is 476% less volatile than the S&P 500.

Summary

Scorpio Tankers beats its peers on 8 of the 15 factors compared.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.