Financial Comparison: TORM (NASDAQ:TRMD) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF)

TORM (NASDAQ:TRMD) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) 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, risk, valuation and institutional ownership.

Profitability

This table compares TORM and Ultrapetrol (Bahamas)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TORM	43.81%	34.45%	20.31%
Ultrapetrol (Bahamas)	N/A	N/A	N/A

Insider and Institutional Ownership

73.9% of TORM shares are held by institutional investors. 0.4% of TORM shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

TORM has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Ultrapetrol (Bahamas) has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for TORM and Ultrapetrol (Bahamas), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TORM	0	1	2	0	2.67
Ultrapetrol (Bahamas)	0	0	0	0	0.00

TORM presently has a consensus price target of $40.00, suggesting a potential upside of 105.66%. Given TORM’s stronger consensus rating and higher possible upside, research analysts plainly believe TORM is more favorable than Ultrapetrol (Bahamas).

Earnings & Valuation

This table compares TORM and Ultrapetrol (Bahamas)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TORM	$1.52 billion	N/A	$648.27 million	$7.73	2.52
Ultrapetrol (Bahamas)	N/A	N/A	N/A	N/A	N/A

TORM has higher revenue and earnings than Ultrapetrol (Bahamas).

Summary

TORM beats Ultrapetrol (Bahamas) on 9 of the 10 factors compared between the two stocks.

About TORM

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.

About Ultrapetrol (Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. The River Business segment owns and operates dry and tanker barges, and push boats in the Hidrovia region of South America. Its dry barges transport agricultural and forestry products, iron ore, and other cargoes; and tanker barges carry petroleum products, vegetable oils, and other liquids. As of December 31, 2015, this segment had 681 barges with approximately 1.3 million dwt capacity; and 34 push boats. The Offshore Supply Business segment owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies. It transports supplies, such as containerized equipment, drill casings, pipes, and heavy loads; fuel, water, drilling fluids, and bulk cement; and various other supplies to drilling rigs and platforms. This segment's fleet consisted of 13 platform supply vessels and 1 remotely operated vehicle. The Ocean Business segment owns and operates oceangoing vessels, which transports petroleum products, as well as a container line service in the Argentine cabotage trade. The company serves petroleum, agricultural, and mining companies. Ultrapetrol (Bahamas) Limited was founded in 1992 and is headquartered in Nassau, the Bahamas. Ultrapetrol (Bahamas) Limited is a subsidiary of Sparrow Capital Investments Ltd.