Analyzing Virgin Galactic (NYSE:SPCE) and BW LPG (NYSE:BWLP)

BW LPG (NYSE:BWLP) and Virgin Galactic (NYSE:SPCE) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Profitability

This table compares BW LPG and Virgin Galactic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BW LPG	N/A	N/A	N/A
Virgin Galactic	-3,975.27%	-88.09%	-34.21%

Insider & Institutional Ownership

46.6% of Virgin Galactic shares are held by institutional investors. 0.4% of Virgin Galactic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BW LPG and Virgin Galactic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BW LPG	$3.60 billion	0.43	N/A	N/A	N/A
Virgin Galactic	$6.80 million	22.83	-$502.34 million	($17.22)	-0.31

BW LPG has higher revenue and earnings than Virgin Galactic.

Analyst Ratings

This is a summary of current ratings and price targets for BW LPG and Virgin Galactic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BW LPG	0	0	0	0	0.00
Virgin Galactic	2	3	1	0	1.83

Virgin Galactic has a consensus target price of $25.50, suggesting a potential upside of 374.42%. Given Virgin Galactic’s stronger consensus rating and higher possible upside, analysts plainly believe Virgin Galactic is more favorable than BW LPG.

Summary

Virgin Galactic beats BW LPG on 6 of the 10 factors compared between the two stocks.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.

About Virgin Galactic

Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.