Genco Shipping & Trading (NYSE:GNK) and Toro (NASDAQ:TORO) Head-To-Head Contrast

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

Earnings and Valuation

This table compares Toro and Genco Shipping & Trading”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$78.47 million	0.77	$140.64 million	$1.86	1.72
Genco Shipping & Trading	$383.83 million	1.77	-$12.87 million	$0.33	48.06

Toro has higher earnings, but lower revenue than Genco Shipping & Trading. Toro is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.7% of Toro shares are held by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are held by institutional investors. 2.5% of Genco Shipping & Trading shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Toro has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Toro and Genco Shipping & Trading, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	0	0	0	N/A
Genco Shipping & Trading	0	2	4	0	2.67

Genco Shipping & Trading has a consensus price target of $24.60, indicating a potential upside of 55.11%. Given Genco Shipping & Trading’s higher probable upside, analysts clearly believe Genco Shipping & Trading is more favorable than Toro.

Profitability

This table compares Toro and Genco Shipping & Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	247.75%	37.32%	21.72%
Genco Shipping & Trading	3.59%	6.11%	5.08%

Summary

Genco Shipping & Trading beats Toro on 7 of the 13 factors compared between the two stocks.

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.

About Genco Shipping & Trading

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of drybulk cargoes worldwide. The company owns and operates dry bulk vessels to transports iron ore, grains, coal, steel products, and other drybulk cargoes. It charters its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities. The company was incorporated in 2004 and is headquartered in New York, New York.