Toro (NASDAQ:TORO – Get Free Report) and Genco Shipping & Trading (NYSE:GNK – Get Free Report) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Valuation & Earnings
This table compares Toro and Genco Shipping & Trading”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Toro | $78.47 million | 0.80 | $140.64 million | $1.86 | 1.77 |
| Genco Shipping & Trading | $423.36 million | 1.65 | -$12.87 million | $0.06 | 272.50 |
Toro has higher earnings, but lower revenue than Genco Shipping & Trading. Toro is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Toro | 247.75% | 37.32% | 21.72% |
| Genco Shipping & Trading | 3.59% | 6.11% | 5.08% |
Risk and Volatility
Toro has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Toro and Genco Shipping & Trading, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toro | 0 | 0 | 0 | 0 | N/A |
| Genco Shipping & Trading | 0 | 1 | 5 | 0 | 2.83 |
Genco Shipping & Trading has a consensus price target of $25.80, suggesting a potential upside of 57.80%. Given Genco Shipping & Trading’s higher probable upside, analysts clearly believe Genco Shipping & Trading is more favorable than Toro.
Institutional and Insider Ownership
1.7% of Toro shares are owned by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are owned by institutional investors. 2.5% of Genco Shipping & Trading shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Genco Shipping & Trading beats Toro on 7 of the 13 factors compared between the two stocks.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
About Genco Shipping & Trading
Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of drybulk cargoes worldwide. The company owns and operates dry bulk vessels to transports iron ore, grains, coal, steel products, and other drybulk cargoes. It charters its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities. The company was incorporated in 2004 and is headquartered in New York, New York.
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