TORM (NASDAQ:TRMD) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) Financial Contrast

Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) and TORM (NASDAQ:TRMD) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares Ultrapetrol (Bahamas) and TORM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultrapetrol (Bahamas)	N/A	N/A	N/A	N/A	N/A
TORM	$1.64 billion	0.97	$648.27 million	$7.73	2.52

TORM has higher revenue and earnings than Ultrapetrol (Bahamas).

Analyst Recommendations

This is a summary of current ratings for Ultrapetrol (Bahamas) and TORM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultrapetrol (Bahamas)	0	0	0	0	0.00
TORM	0	1	2	0	2.67

TORM has a consensus target price of $40.00, suggesting a potential upside of 105.66%. Given TORM’s stronger consensus rating and higher possible upside, analysts clearly believe TORM is more favorable than Ultrapetrol (Bahamas).

Risk & Volatility

Ultrapetrol (Bahamas) has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, TORM has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Ultrapetrol (Bahamas) and TORM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultrapetrol (Bahamas)	N/A	N/A	N/A
TORM	43.81%	34.45%	20.31%

Summary

TORM beats Ultrapetrol (Bahamas) on 9 of the 10 factors compared between the two stocks.

About Ultrapetrol (Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. The River Business segment owns and operates dry and tanker barges, and push boats in the Hidrovia region of South America. Its dry barges transport agricultural and forestry products, iron ore, and other cargoes; and tanker barges carry petroleum products, vegetable oils, and other liquids. As of December 31, 2015, this segment had 681 barges with approximately 1.3 million dwt capacity; and 34 push boats. The Offshore Supply Business segment owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies. It transports supplies, such as containerized equipment, drill casings, pipes, and heavy loads; fuel, water, drilling fluids, and bulk cement; and various other supplies to drilling rigs and platforms. This segment's fleet consisted of 13 platform supply vessels and 1 remotely operated vehicle. The Ocean Business segment owns and operates oceangoing vessels, which transports petroleum products, as well as a container line service in the Argentine cabotage trade. The company serves petroleum, agricultural, and mining companies. Ultrapetrol (Bahamas) Limited was founded in 1992 and is headquartered in Nassau, the Bahamas. Ultrapetrol (Bahamas) Limited is a subsidiary of Sparrow Capital Investments Ltd.

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.