Critical Analysis: Dorian LPG (NYSE:LPG) and Capital Clean Energy Carriers (NASDAQ:CCEC)

Dorian LPG (NYSE:LPG) and Capital Clean Energy Carriers (NASDAQ:CCEC) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

62.5% of Dorian LPG shares are held by institutional investors. 13.4% of Dorian LPG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Dorian LPG and Capital Clean Energy Carriers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorian LPG	$501.24 million	2.22	$307.45 million	$5.90	4.40
Capital Clean Energy Carriers	$447.31 million	2.27	$47.21 million	$1.30	14.10

Dorian LPG has higher revenue and earnings than Capital Clean Energy Carriers. Dorian LPG is trading at a lower price-to-earnings ratio than Capital Clean Energy Carriers, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dorian LPG has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Capital Clean Energy Carriers has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Dorian LPG and Capital Clean Energy Carriers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorian LPG	47.87%	23.75%	13.48%
Capital Clean Energy Carriers	25.79%	9.72%	3.24%

Dividends

Dorian LPG pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Capital Clean Energy Carriers pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Dorian LPG pays out 16.9% of its earnings in the form of a dividend. Capital Clean Energy Carriers pays out 46.2% 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. Dorian LPG is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dorian LPG and Capital Clean Energy Carriers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorian LPG	0	0	2	0	3.00
Capital Clean Energy Carriers	0	0	1	1	3.50

Dorian LPG presently has a consensus target price of $47.00, suggesting a potential upside of 80.91%. Capital Clean Energy Carriers has a consensus target price of $22.00, suggesting a potential upside of 20.02%. Given Dorian LPG’s higher possible upside, analysts plainly believe Dorian LPG is more favorable than Capital Clean Energy Carriers.

Summary

Dorian LPG beats Capital Clean Energy Carriers on 13 of the 17 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.

About Capital Clean Energy Carriers

Capital Clean Energy Carriers Corp., a shipping company, provides marine transportation services in Greece. The company’s vessels provide a range of cargoes, including liquefied natural gas, containerized goods, and cargo under short-term voyage charters, and medium to long-term time charters. It owns vessels, including Neo-Panamax container vessels, Panamax container vessels, cape-size bulk carrier, and LNG carriers. In addition, the company produces and distributes oil and natural gas, including biofuels, motor oil, lubricants, petrol, crudes, liquefied natural gas, marine fuels, natural gas liquids, and petrochemicals. It serves as the general partner of the company. The company was formerly known as Capital Product Partners L.P. and changed its name to Capital Clean Energy Carriers Corp. in August 2024. Capital Clean Energy Carriers Corp. was incorporated in 2007 and is headquartered in Piraeus, Greece. Capital Clean Energy Carriers Corp. operates as a subsidiary of Capital Maritime & Trading Corp.