Contrasting Teekay (NYSE:TK) and Okeanis Eco Tankers (NYSE:ECO)

Okeanis Eco Tankers (NYSE:ECO) and Teekay (NYSE:TK) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Dividends

Okeanis Eco Tankers pays an annual dividend of $1.40 per share and has a dividend yield of 6.3%. Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 3.8%. Okeanis Eco Tankers pays out 41.4% of its earnings in the form of a dividend. Teekay pays out 17.7% 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.

Risk and Volatility

Okeanis Eco Tankers has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Okeanis Eco Tankers and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okeanis Eco Tankers	0	0	1	0	3.00
Teekay	0	0	0	0	0.00

Okeanis Eco Tankers currently has a consensus target price of $40.00, suggesting a potential upside of 78.73%. Given Okeanis Eco Tankers’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Okeanis Eco Tankers is more favorable than Teekay.

Valuation & Earnings

This table compares Okeanis Eco Tankers and Teekay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okeanis Eco Tankers	$393.23 million	1.83	$145.25 million	$3.38	6.62
Teekay	$1.22 billion	0.50	$150.64 million	$1.41	4.70

Teekay has higher revenue and earnings than Okeanis Eco Tankers. Teekay is trading at a lower price-to-earnings ratio than Okeanis Eco Tankers, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

46.7% of Teekay shares are held by institutional investors. 2.4% of Teekay shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Okeanis Eco Tankers and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okeanis Eco Tankers	27.68%	25.40%	9.58%
Teekay	10.96%	5.67%	5.08%

Summary

Okeanis Eco Tankers beats Teekay on 11 of the 16 factors compared between the two stocks.

About Okeanis Eco Tankers

Okeanis Eco Tankers Corp., a shipping company, owns and operates tanker vessels worldwide. It operates a fleet of 14 tanker vessels comprising six modern Suezmax tankers and eight modern VLCC tankers focusing on the transportation of crude oil. The company was incorporated in 2018 and is based in Neo Faliro, Greece.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.