Analyzing ModivCare (NASDAQ:MODV) and Hafnia (NYSE:HAFN)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hafnia and ModivCare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	1	0	3.00
ModivCare	0	2	2	0	2.50

Hafnia currently has a consensus price target of $10.00, suggesting a potential upside of 91.20%. ModivCare has a consensus price target of $27.25, suggesting a potential upside of 61.82%. Given Hafnia’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hafnia is more favorable than ModivCare.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$1.92 billion	1.38	$793.28 million	$1.57	3.33
ModivCare	$2.76 billion	0.09	-$204.46 million	($12.88)	-1.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hafnia	47.30%	34.28%	20.51%
ModivCare	-6.57%	26.14%	1.08%

Summary

Hafnia beats ModivCare on 9 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 ModivCare

ModivCare Inc., a technology-enabled healthcare services company, provides a suite of integrated supportive care solutions for public and private payors and their members. The company operates through four segments: Non-Emergency Medical Transportation (NEMT), Personal Care, Remote Patient Monitoring (RPM), and Corporate and Other. The company offers risk underwriting, contact center management, network credentialing, claims management, and non-emergency medical transport management services for Medicaid or Medicare eligible members, whose limited mobility or financial resources hinder their ability to access necessary healthcare and social services. It also provides in-home personal care services, such as bathing, personal hygiene, grooming, oral care, dressing, medication reminders, meal planning, preparation and feeding, housekeeping, transportation services, prescription reminders, and assistance with dressing and ambulation services through placing non-medical personal care assistants, home health aides, and skilled nurses primarily to Medicaid patients in need of care monitoring and assistance in performing daily living activities, including senior citizens and disabled adults. In addition, the company offers remote patient monitoring solutions, including personal emergency response systems, vitals monitoring, medication management, and data-driven patient engagement solutions. It serves federal, state, and local government agencies, MCOs, commercial insurers, private individuals, and health systems. The company was formerly known as The Providence Service Corporation and changed its name to ModivCare Inc. in January 2021. ModivCare Inc. was incorporated in 1996 and is headquartered in Denver, Colorado.