Contrasting Euroseas (NASDAQ:ESEA) & Toro (NASDAQ:TORO)

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

Volatility and Risk

Toro has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Earnings & Valuation

This table compares Toro and Euroseas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$80.63 million	0.69	$140.64 million	$1.06	2.76
Euroseas	$208.65 million	1.15	$114.55 million	$16.22	2.10

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

Insider and Institutional Ownership

1.7% of Toro shares are held by institutional investors. Comparatively, 6.3% of Euroseas shares are held by institutional investors. 55.9% of Euroseas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Toro and Euroseas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	0	0	0	0.00
Euroseas	0	0	1	1	3.50

Euroseas has a consensus price target of $56.50, suggesting a potential upside of 65.50%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts plainly believe Euroseas is more favorable than Toro.

Profitability

This table compares Toro and Euroseas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	176.49%	17.16%	10.30%
Euroseas	54.21%	34.73%	20.86%

Summary

Euroseas beats Toro on 11 of the 15 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 Euroseas

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece.