Critical Contrast: International Seaways (INSW) and Tidewater (TDW)

International Seaways (NYSE: TDW) and Tidewater (NYSE:TDW) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

85.4% of International Seaways shares are held by institutional investors. Comparatively, 83.9% of Tidewater shares are held by institutional investors. 0.9% of International Seaways shares are held by insiders. Comparatively, 1.6% of Tidewater 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.

Analyst Ratings

This is a breakdown of recent recommendations for International Seaways and Tidewater, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Seaways 0 0 2 0 3.00
Tidewater 0 0 1 0 3.00

International Seaways currently has a consensus price target of $29.00, suggesting a potential upside of 43.92%. Given International Seaways’ higher probable upside, equities research analysts clearly believe International Seaways is more favorable than Tidewater.

Valuation & Earnings

This table compares International Seaways and Tidewater’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Seaways $290.10 million 2.03 -$106.08 million ($0.29) -69.48
Tidewater $129.21 million 6.28 N/A N/A N/A

Tidewater has lower revenue, but higher earnings than International Seaways.

Profitability

This table compares International Seaways and Tidewater’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Seaways -67.42% -6.07% -3.81%
Tidewater -294.06% -119.26% -69.69%

Summary

International Seaways beats Tidewater on 7 of the 9 factors compared between the two stocks.

International Seaways Company Profile

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the International Flag trades. It operates through two segments, Crude Tankers and Product Carriers. As of June 14, 2018, the company owned and operated a fleet of 55 vessels, including 1 ultra large crude carrier, 14 very large crude carriers, 2 Suezmaxes, 7 Aframaxes, 12 Panamaxes, and 13 medium range tankers. International Seaways, Inc., through joint venture partnerships, also has ownership interests in 4 liquefied natural gas carriers, and 2 floating storage and offloading service vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. The company was incorporated in 1999 and is headquartered in New York, New York.

Tidewater Company Profile

Tidewater Inc. provides offshore service vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore exploration, field development, and production, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, remotely operated vehicle (ROV) operations, and seismic and subsea support; and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply and anchor handling towing supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats and utility vessels to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs for use in towing floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges. The company serves oil and natural gas exploration, field development, and production companies; independent exploration and production companies; government-owned or government-controlled organizations, and other companies; drilling contractors; and other companies, such as offshore construction, diving, and well stimulation companies. As of March 31, 2017, it owned or chartered 260 vessels and 8 ROVs. Tidewater Inc. was founded in 1956 and is headquartered in New Orleans, Louisiana.

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