Financial Review: Dorian LPG (NYSE:LPG) vs. Toro (NASDAQ:TORO)

Dorian LPG (NYSE:LPG) and Toro (NASDAQ:TORO) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

62.5% of Dorian LPG shares are held by institutional investors. Comparatively, 1.7% of Toro shares are held by institutional investors. 15.9% of Dorian LPG shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Dorian LPG and Toro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorian LPG	0	1	2	0	2.67
Toro	0	0	0	0	N/A

Dorian LPG currently has a consensus price target of $43.00, indicating a potential upside of 0.77%. Given Dorian LPG’s higher probable upside, analysts plainly believe Dorian LPG is more favorable than Toro.

Earnings & Valuation

This table compares Dorian LPG and Toro’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorian LPG	$560.72 million	3.09	$307.45 million	$7.60	5.61
Toro	$78.47 million	0.93	$140.64 million	$2.78	1.38

Dorian LPG has higher revenue and earnings than Toro. Toro is trading at a lower price-to-earnings ratio than Dorian LPG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dorian LPG and Toro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorian LPG	54.83%	32.22%	17.21%
Toro	259.21%	50.68%	27.87%

Volatility and Risk

Dorian LPG has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Toro has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Summary

Dorian LPG beats Toro on 9 of the 13 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide. It owns and operates twenty-five very large gas carriers (VLGCs). The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.

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.