Critical Analysis: Hafnia (NYSE:HAFN) & MakeMyTrip (NASDAQ:MMYT)

Hafnia (NYSE:HAFN) and MakeMyTrip (NASDAQ:MMYT) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Hafnia and MakeMyTrip, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	2	0	3.00
MakeMyTrip	0	0	2	0	3.00

Hafnia presently has a consensus target price of $8.25, suggesting a potential upside of 81.52%. MakeMyTrip has a consensus target price of $122.50, suggesting a potential upside of 22.66%. Given Hafnia’s higher possible upside, equities research analysts plainly believe Hafnia is more favorable than MakeMyTrip.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$2.87 billion	0.80	$793.28 million	$1.51	3.01
MakeMyTrip	$935.76 million	11.72	$216.80 million	$1.84	54.28

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

Insider & Institutional Ownership

51.9% of MakeMyTrip shares are held by institutional investors. 10.3% of MakeMyTrip shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hafnia and MakeMyTrip’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%
MakeMyTrip	25.42%	11.46%	7.59%

Summary

Hafnia beats MakeMyTrip on 6 of the 11 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 MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.