Comparing Hafnia (NYSE:HAFN) and Booking (NASDAQ:BKNG)

Hafnia (NYSE:HAFN) and Booking (NASDAQ:BKNG) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Hafnia and Booking, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	1	1	3.50
Booking	0	10	19	2	2.74

Hafnia presently has a consensus price target of $6.50, indicating a potential upside of 23.81%. Booking has a consensus price target of $5,388.37, indicating a potential downside of 2.73%. Given Hafnia’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hafnia is more favorable than Booking.

Valuation & Earnings

This table compares Hafnia and Booking”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$2.63 billion	1.01	$793.28 million	$1.21	4.34
Booking	$24.09 billion	7.48	$5.88 billion	$160.74	34.46

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

Profitability

This table compares Hafnia and Booking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	53.44%	36.90%	22.38%
Booking	24.78%	-159.34%	22.77%

Insider & Institutional Ownership

92.4% of Booking shares are owned by institutional investors. 0.1% of Booking shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Hafnia pays an annual dividend of $0.40 per share and has a dividend yield of 7.6%. Booking pays an annual dividend of $38.40 per share and has a dividend yield of 0.7%. Hafnia pays out 33.1% of its earnings in the form of a dividend. Booking pays out 23.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Booking has raised its dividend for 1 consecutive years.

Risk and Volatility

Hafnia has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Booking has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

Booking beats Hafnia on 13 of the 18 factors compared between the two stocks.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.

About Booking

Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).