In International Shipping News 21/07/2016
➤ Income Statement
➤ Margins
➤ Growth
WHY THIS MATTERS
Source: CML
This is a head to head compare of GasLog Ltd. (NYSE:GLOG) and Nordic American Tankers Limited (NYSE:NAT) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.
Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.
Nordic American Tankers Limited has a substantially higher fundamental rating then GasLog Ltd. which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company’s operating and financial condition. The rating is computed by measuring numerous elements of the company’s current financial data and their associated changes over time.
Now, let’s dive into the two companies to compare them.
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.
↪ Nordic American Tankers Limited has larger revenue in the last year than GasLog Ltd.. Raw revenue comps do not affect the head to head rating.
↪ NAT is showing a profit while GLOG has negative earnings over the last year.
↪ NAT generates massively larger revenue per employee ($21.2 million) than GLOG ($2.6 million).
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.
↪ Nordic American Tankers Limited generates $1.78 in revenue for every $1 of expense, notably higher than GasLog Ltd.’s $1.48.
↪ NAT generates $0.01 in levered free cash flow for every $1 of revenue, while GLOG generates a cash flow loss of $-0.63 per $1 of revenue.
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.
↪ Both companies are growing revenue. Nordic American Tankers Limited is growing revenue notably faster than GasLog Ltd..
↪ For every $1 in revenue, the stock market prices in $2.57 in market cap for GLOG and $2.72 in market cap for NAT.
Nordic American Tankers Limited (NYSE:NAT) defeats GasLog Ltd. (NYSE:GLOG) : 91 to 9
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