Critical Contrast: Teekay Corporation (TK) & Navios Maritime Holdings (NM)

Teekay Corporation (NYSE: TK) and Navios Maritime Holdings (NYSE:NM) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitabiliy.

Profitability

This table compares Teekay Corporation and Navios Maritime Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Corporation -5.36% -1.86% -0.57%
Navios Maritime Holdings -20.55% -13.28% -4.27%

Risk & Volatility

Teekay Corporation has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Navios Maritime Holdings has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Teekay Corporation and Navios Maritime Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Corporation 1 4 0 0 1.80
Navios Maritime Holdings 1 1 0 0 1.50

Teekay Corporation presently has a consensus target price of $5.33, indicating a potential downside of 1.78%. Navios Maritime Holdings has a consensus target price of $1.25, indicating a potential upside of 6.84%. Given Navios Maritime Holdings’ higher probable upside, analysts plainly believe Navios Maritime Holdings is more favorable than Teekay Corporation.

Dividends

Teekay Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 4.1%. Navios Maritime Holdings does not pay a dividend. Teekay Corporation pays out -13.4% of its earnings in the form of a dividend. Navios Maritime Holdings has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

46.7% of Teekay Corporation shares are owned by institutional investors. Comparatively, 19.7% of Navios Maritime Holdings shares are owned by institutional investors. 2.4% of Teekay Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Teekay Corporation and Navios Maritime Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teekay Corporation $2.23 billion 0.21 $923.65 million ($1.64) -3.31
Navios Maritime Holdings $435.26 million 0.31 $79.40 million ($0.80) -1.46

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

Summary

Teekay Corporation beats Navios Maritime Holdings on 10 of the 15 factors compared between the two stocks.

About Teekay Corporation

Teekay Corporation (Teekay) is a provider of crude oil and gas marine transportation services. The Company also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. The Company is engaged in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors, as well as in the operations in the offshore production, storage and transportation sector. It is also involved in the conventional tanker business. Teekay provides a set of marine services to the oil and gas companies. The Company has four lines of business: offshore logistics (shuttle tankers, the HiLoad DP unit, floating storage and off-take (FSO) units, units for maintenance and safety (UMS), and long-distance towing and offshore installation vessels), offshore production (floating production, storage and offloading (FPSO) units), liquefied gas carriers and conventional tankers.

About Navios Maritime Holdings

Navios Maritime Holdings Inc. (Navios Holdings) is a global, vertically integrated seaborne shipping and logistics company. The Company is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. It operates through two segments: the Dry bulk Vessel Operations and the Logistics Business. The Dry bulk Vessel Operations segment consists of the transportation and handling of bulk cargoes through the ownership, operation and trading of vessels, freight and forward freight agreements (FFAs). The Logistics Business segment consists of port terminal business, barge business and cabotage business in the Hidrovia region of South America. Navios Holdings also offers commercial and technical management services to the fleets of Navios Maritime Partners L.P., Navios Maritime Acquisition Corporation, Navios Maritime Midstream Partners L.P., Navios Europe Inc. and Navios Europe (II) Inc.

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