Euroseas (NASDAQ:ESEA) versus Toro (NASDAQ:TORO) Financial Review

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

Insider and Institutional Ownership

1.7% of Toro shares are owned by institutional investors. Comparatively, 6.3% of Euroseas shares are owned by institutional investors. 55.9% of Euroseas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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%

Analyst Ratings

This is a summary of current ratings and price targets for Toro and Euroseas, as reported 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 target price of $56.50, indicating a potential upside of 60.06%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts clearly believe Euroseas is more favorable than Toro.

Valuation & Earnings

This table compares Toro and Euroseas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$80.63 million	0.68	$140.64 million	$1.06	2.72
Euroseas	$208.65 million	1.19	$114.55 million	$16.22	2.18

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.

Volatility & Risk

Toro has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

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.