Analyzing Toro (NASDAQ:TORO) & ZIM Integrated Shipping Services (NYSE:ZIM)

ZIM Integrated Shipping Services (NYSE:ZIM) and Toro (NASDAQ:TORO) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Earnings & Valuation

This table compares ZIM Integrated Shipping Services and Toro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM Integrated Shipping Services	$5.16 billion	0.42	-$2.70 billion	$11.94	1.49
Toro	$78.47 million	0.68	$140.64 million	$1.06	2.64

Toro has lower revenue, but higher earnings than ZIM Integrated Shipping Services. ZIM Integrated Shipping Services is trading at a lower price-to-earnings ratio than Toro, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

21.4% of ZIM Integrated Shipping Services shares are held by institutional investors. Comparatively, 1.7% of Toro shares are held by institutional investors. 1.3% of ZIM Integrated Shipping Services shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ZIM Integrated Shipping Services and Toro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM Integrated Shipping Services	19.26%	48.63%	15.13%
Toro	176.49%	17.16%	10.30%

Analyst Ratings

This is a breakdown of recent recommendations for ZIM Integrated Shipping Services and Toro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM Integrated Shipping Services	5	1	0	1	1.57
Toro	0	0	0	0	0.00

ZIM Integrated Shipping Services presently has a consensus price target of $15.04, suggesting a potential downside of 15.72%. Given ZIM Integrated Shipping Services’ stronger consensus rating and higher possible upside, equities analysts plainly believe ZIM Integrated Shipping Services is more favorable than Toro.

Risk and Volatility

ZIM Integrated Shipping Services has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Toro has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Summary

ZIM Integrated Shipping Services beats Toro on 10 of the 14 factors compared between the two stocks.

About ZIM Integrated Shipping Services

ZIM Integrated Shipping Services Ltd., together with its subsidiaries, provides container shipping and related services in Israel and internationally. It provides door-to-door and port-to-port transportation services for various types of customers, including end-users, consolidators, and freight forwarders. The company also offers ZIMonitor, a premium reefer cargo tracking service. As of March 1, 2024, it operated a fleet of 150 vessels, which included 134 container vessels and 16 vehicle transport vessels; and as of December 31, 2023, it operated a network of 67 weekly lines. The company was incorporated in 1945 and is headquartered in Haifa, Israel.

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.