TORM (NASDAQ:TRMD) & Atlas (NYSE:ATCO) Head to Head Contrast

TORM (NASDAQ:TRMD) and Atlas (NYSE:ATCO) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

TORM has a beta of -363.3, meaning that its share price is 36,430% less volatile than the S&P 500. Comparatively, Atlas has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares TORM and Atlas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TORM 18.55% 14.72% 7.49%
Atlas 21.49% 9.14% 3.64%

Institutional and Insider Ownership

74.9% of TORM shares are held by institutional investors. Comparatively, 52.1% of Atlas shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

TORM pays an annual dividend of $1.70 per share and has a dividend yield of 18.3%. Atlas pays an annual dividend of $0.50 per share and has a dividend yield of 3.6%. Atlas pays out 64.1% of its earnings in the form of a dividend. Atlas has increased its dividend for 1 consecutive years.

Earnings & Valuation

This table compares TORM and Atlas’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TORM $693.00 million 1.00 $166.02 million N/A N/A
Atlas $1.13 billion 3.05 $439.10 million $0.78 17.91

Atlas has higher revenue and earnings than TORM.

Analyst Ratings

This is a summary of current ratings and target prices for TORM and Atlas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TORM 0 0 1 0 3.00
Atlas 0 3 3 0 2.50

Atlas has a consensus price target of $17.79, suggesting a potential upside of 27.31%. Given Atlas’ higher possible upside, analysts plainly believe Atlas is more favorable than TORM.

Summary

Atlas beats TORM on 9 of the 15 factors compared between the two stocks.

About TORM

TORM plc, a product tanker company, engages in the transportation of refined oil products and crude oil worldwide. The company transports gasoline, jet fuel, naphtha, and diesel. As of March 1, 2021, it operated a fleet of approximately 80 vessels. The company was founded in 1889 and is based in London, the United Kingdom.

About Atlas

Atlas Corp. operates as an asset manager and operator. The company, through its subsidiaries, operates as an independent charter owner and manager of containerships. The company charters its containerships under long-term and fixed-rate time charters to various container liner companies. As of March 10, 2020, it operated a fleet of 118 containerships. It also provides fast-track mobile turbine power to various industries. In addition, the company plans, finances, constructs, and commissions permanent power plants. Further, it provides customized turnkey solutions comprising plant design, fast-track installation, balance of plant, and decommissioning. Atlas Corp. was incorporated in 2019 and is based in Vancouver, Canada.

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