Comparing Hafnia and Expedia Group: A Transportation Sector Analysis

Hafnia (NYSE:HAFN) and Expedia Group (NASDAQ:EXPE) are noted players in the transportation industry, but determining which company stands out as the superior business involves a detailed comparison. This article evaluates both companies based on several critical factors: earnings strength, institutional ownership, dividends, profitability, analyst recommendations, inherent risks, and overall valuation.

Institutional and Insider Ownership

A significant 90.8% of Expedia Group's shares are held by institutional investors, indicating strong market confidence among large money managers and hedge funds in the company's long-term potential. Furthermore, 6.8% of Expedia Group shares are owned by insiders, reflecting a vested interest from company leadership. This level of institutional ownership typically suggests that experts expect the company to outperform the market.

Analyst Recommendations

Recent recommendations and price predictions for Hafnia and Expedia Group have been compiled by MarketBeat. The following table shows this information:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	2	0	3.00
Expedia Group	0	19	11	3	2.52

Currently, Hafnia has a consensus price target of $8.25, which signals a robust upside potential of 68.54%. In comparison, Expedia Group’s consensus price target stands at $192.64, implying a potential downside of 3.56%. Analysts appear to favor Hafnia, viewing it as the more attractive investment opportunity.

Earnings and Valuation

The following table provides a comparison of Hafnia and Expedia Group's financial performance indicators:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$3.04 billion	0.82	$793.28 million	$1.70	2.88
Expedia Group	$13.69 billion	1.88	$1.23 billion	$9.05	22.07

Expedia Group displays superior revenue and earnings figures compared to Hafnia. However, Hafnia’s lower price-to-earnings ratio indicates it is a more cost-effective option at this moment.

Dividends

In terms of dividends, Hafnia offers an annual payout of $1.51 per share, resulting in a substantial dividend yield of 30.8%. Conversely, Expedia Group pays an annual dividend of $1.60 per share, leading to a yield of only 0.8%. Notably, Hafnia distributes 88.8% of its earnings as dividends, raising questions about its ability to sustain this payout level in the long term. In contrast, Expedia Group allocates just 17.7% of its earnings toward dividends.

Profitability

The following table illustrates the profitability metrics for Hafnia and Expedia Group:

	Net Margins	Return on Equity	Return on Assets
Hafnia	53.44%	36.90%	22.38%
Expedia Group	9.01%	52.41%	5.23%

Summary

In conclusion, when comparing Hafnia and Expedia Group across 16 different factors, Expedia Group outperforms Hafnia in 11 of those areas.

About Hafnia

Hafnia Limited, based in Hamilton, Bermuda, is engaged in the operation of oil product tankers. The company operates a diverse fleet that includes Long Range II, Long Range I, Medium Range, Handy size, and Specialized segments. Hafnia transports a range of products, including both clean and dirty refined oil, vegetable oil, and various chemicals to clients worldwide. It manages a total of 200 vessels and offers services including ship owning, ship management, investment management, and corporate support.

About Expedia Group

Expedia Group, Inc., headquartered in Seattle, Washington, functions as an online travel agency. Its operations encompass B2C and B2B segments, along with a hotel metasearch platform, trivago, which directs referrals to various travel service providers. The B2C segment features well-known brands like Brand Expedia, Hotels.com, and Vrbo, while the B2B area serves corporate travel needs and other travel-related businesses. Founded in 1996, Expedia Group has established itself as a prominent force in the global travel market.

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transportation, stocks, analysis