Financial Analysis: BW LPG (NYSE:BWLP) versus Hafnia (NYSE:HAFN)

Hafnia (NYSE:HAFN) and BW LPG (NYSE:BWLP) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Hafnia and BW LPG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	1	0	3.00
BW LPG	0	0	0	0	0.00

Hafnia presently has a consensus price target of $10.00, suggesting a potential upside of 82.82%. Given Hafnia’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hafnia is more favorable than BW LPG.

Dividends

Hafnia pays an annual dividend of $1.62 per share and has a dividend yield of 29.6%. BW LPG pays an annual dividend of $2.32 per share and has a dividend yield of 18.3%. Hafnia pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hafnia	47.30%	34.28%	20.51%
BW LPG	N/A	N/A	N/A

Earnings & Valuation

This table compares Hafnia and BW LPG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$1.92 billion	1.45	$793.28 million	$1.57	3.48
BW LPG	N/A	N/A	N/A	N/A	N/A

Hafnia has higher revenue and earnings than BW LPG.

Summary

Hafnia beats BW LPG on 8 of the 9 factors compared between the two stocks.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.

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.