Torm (TRMD) and Its Competitors Critical Analysis

Torm (NASDAQ: TRMD) is one of 48 publicly-traded companies in the “Deep sea foreign transportation of freight” industry, but how does it contrast to its competitors? We will compare Torm to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Torm and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Torm 10.57% 8.45% 4.16%
Torm Competitors -10.88% -0.62% 0.49%

Risk and Volatility

Torm has a beta of -402.41, meaning that its stock price is 40,341% less volatile than the S&P 500. Comparatively, Torm’s competitors have a beta of -7.66, meaning that their average stock price is 866% less volatile than the S&P 500.

Earnings and Valuation

This table compares Torm and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Torm $693.00 million $166.02 million N/A
Torm Competitors $403.60 million $1.74 million -5.17

Torm has higher revenue and earnings than its competitors.

Insider & Institutional Ownership

70.8% of Torm shares are owned by institutional investors. Comparatively, 52.9% of shares of all “Deep sea foreign transportation of freight” companies are owned by institutional investors. 19.1% of shares of all “Deep sea foreign transportation of freight” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Torm and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Torm 0 0 0 0 N/A
Torm Competitors 657 1523 1470 57 2.25

As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 119.30%. Given Torm’s competitors higher possible upside, analysts clearly believe Torm has less favorable growth aspects than its competitors.

Summary

Torm beats its competitors on 7 of the 10 factors compared.

About Torm

TORM plc, a product tanker company, engages in the transportation of refined oil products worldwide. The company transports gasoline, jet fuel, naphtha, and diesel oil. As of March 13, 2020, it operated a fleet of approximately 80 vessels. The company was founded in 1889 and is based in London, the United Kingdom. TORM PLC is a subsidiary of Njord Luxco.

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