Kirby (NYSE:KEX) vs. Dorian LPG (NYSE:LPG) Financial Analysis

Dorian LPG (NYSE:LPG) and Kirby (NYSE:KEX) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

62.5% of Dorian LPG shares are held by institutional investors. Comparatively, 96.2% of Kirby shares are held by institutional investors. 13.6% of Dorian LPG shares are held by insiders. Comparatively, 0.9% of Kirby shares are held 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorian LPG	$323.20 million	4.05	$90.17 million	$1.15	26.69
Kirby	$3.27 billion	1.65	$286.71 million	$5.29	18.24

Kirby has higher revenue and earnings than Dorian LPG. Kirby 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 Kirby’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorian LPG	15.15%	5.24%	3.08%
Kirby	9.25%	10.02%	5.63%

Analyst Ratings

This is a summary of recent recommendations and price targets for Dorian LPG and Kirby, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorian LPG	0	0	2	0	3.00
Kirby	0	0	2	0	3.00

Dorian LPG presently has a consensus price target of $35.00, indicating a potential upside of 14.04%. Kirby has a consensus price target of $130.00, indicating a potential upside of 34.76%. Given Kirby’s higher possible upside, analysts clearly believe Kirby is more favorable than Dorian LPG.

Volatility & Risk

Dorian LPG has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Kirby has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Summary

Kirby beats Dorian LPG on 8 of the 12 factors compared between the two stocks.

About Dorian LPG

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

About Kirby

Kirby Corporation operates domestic tank barges in the United States. Its Marine Transportation segment provides marine transportation service and towing vessel transporting bulk liquid product, as well as operates tank barge throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along three United States coasts, and in Alaska and Hawaii. It also transports petrochemicals, black oils, refined petroleum products, and agricultural chemicals by tank barges; and operates offshore dry-bulk barges and tugboat units that are engaged in the offshore transportation of dry-bulk cargos in the United States coastal trade. It owns and operates 1,076 inland tank barges, approximately 281 inland towboats, 28 coastal tank barges, 25 coastal tugboats, 4 offshore dry-bulk cargo barges, 4 offshore tugboats, and a docking tugboat. Its Distribution and Services segment sells after-market service and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, electrical distribution and control systems, energy storage battery systems, and related oilfield service equipment; rebuilds component parts or diesel engines, transmissions and reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications; rents generators, industrial compressors, high capacity lift trucks, and refrigeration trailers; and manufactures and remanufactures oilfield service equipment, including pressure pumping units, as well as manufacturers electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems. It serves to various companies, the United States government, and pleasure crafts. The company was formerly known as Kirby Exploration Company, Inc. and changed its name to Kirby Corporation in 1990. Kirby Corporation was founded in 1921 and is headquartered in Houston, Texas.