STNG vs TRMD: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
STNG is the larger of the two ($3.90B market cap): the incumbent the market prices for continued execution (13.11x forward earnings, beta -0.25). TRMD is the smaller challenger ($3.10B), cheaper on forward earnings (6.78x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
STNG vs TRMD: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | STNG | TRMD | What it tells you |
|---|---|---|---|
| Market cap | $3.90B | $3.10B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 13.11 | 6.78 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 4.85 | 8.89 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | -0.25 | 0.01 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 78% of range | 71% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.15 | 1.36 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: TRMD is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how STNG and TRMD affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. STNG and TRMD share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined STNG and TRMD exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Scorpio Tankers Inc (STNG) do?
Scorpio Tankers Inc is one of the world's largest owners and operators of product tankers, the ships that carry refined petroleum products such as gasoline, diesel, jet fuel, and naphtha (as opposed to crude oil). Its fleet spans LR2, MR, and Handymax vessels, and in 2026 numbered in the low 80s of ships as the company sold selected older tankers. The economics are straightforward but volatile: most vessels earn money in the spot and pool markets, where daily time-charter-equivalent (TCE) rates move with global refined-product demand, trade routes, refinery locations, and fleet supply. When those rates are high, a large fleet like Scorpio's generates enormous cash flow because much of a ship's cost is fixed; when rates fall, that same operating leverage cuts the other way.
What does TORM plc (TRMD) do?
TORM plc is a shipping company that owns and operates a fleet of product tankers, the vessels that carry refined petroleum products such as gasoline, jet fuel, diesel, naphtha, and gas oil, along with some dirty petroleum products. The company operates mainly through its Tanker segment, complemented by a smaller Marine Engineering business, and runs an integrated commercial platform that pools its ships to chase the best available freight rates across trade routes. TORM is incorporated in the United Kingdom, headquartered in Copenhagen, and its Class A shares are listed on Nasdaq in New York under the ticker TRMD (with a separate Danish listing).
STNG vs TRMD: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- STNG drivers: Product-tanker spot rates drive everything; Deleveraging and a stronger balance sheet.
- TRMD drivers: Strong product-tanker freight market; Variable dividend tied to profit.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is shipping cyclicality: Scorpio's revenue and profits are tied to product-tanker spot rates, which can fall sharply if refined-product demand weakens, trade routes shorten, or a wave of newbuild vessels expands supply. For TRMD, tORM's earnings are highly cyclical and swing with product-tanker freight rates, which the company does not control and which depend on global refined-product demand, trade routing, vessel supply, and newbuild deliveries.
STNG or TRMD: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick STNG if you believe its drivers more; TRMD if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the STNG and TRMD guides.
STNG vs TRMD: the full fundamentals
STNG. Figures are approximate and tied to the asOf date, so verify live numbers before acting. For a cyclical shipping company, earnings multiples matter less than where tanker rates sit in the cycle and what the fleet is worth net of debt: a low P/E can simply reflect peak-cycle earnings that may not repeat. Scorpio's deleveraging and capital returns have strengthened the story, but the stock is still fundamentally a bet on product-tanker freight markets. Nothing here is investment advice.
TRMD. The very low P/E (around 4x) and high trailing dividend yield (around 13%) are characteristic of a shipping company earning near a cyclical peak, where the market assumes profits and payouts will normalize lower. FY2025 net income of about $286m was already down sharply from about $612m in 2024, illustrating how fast results move with freight rates. Q1 2026 profit nearly doubled year over year on rate strength tied to trade disruption, and management raised full-year 2026 guidance.
Headline figures (approximate, Jul 2026): STNG shows revenue trend Highly cyclical, driven by product-tanker TCE rates; strong in firm markets and can fall quickly when rates soften. Verify live figures before acting., profitability High operating leverage: strong spot rates produce large profits, weak rates compress them fast, so earnings swing widely across the cycle. Verify live figures before acting., balance sheet / leverage Substantially deleveraged versus prior years, with average debt sharply reduced and a large cash position plus undrawn revolvers. Verify live figures before acting., valuation framing Often screened on net asset value (fleet value less debt) and cash flow rather than a simple P/E; a low multiple on peak-cycle earnings can be a trap. Verify live figures before acting.; TRMD shows revenue (ttm) ~$1.34 billion, net income (fy2025) ~$286 million (2024: ~$612 million), net profit (q1 2026) ~$122 million (EPS ~$1.21), eps (fy2025) ~$2.91.
The bottom line: STNG vs TRMD
STNG and TRMD are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined STNG and TRMD exposure against your real portfolio. It is not an investment adviser.
Wondering how STNG or TRMD fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Scorpio Tankers Inc with AI
Connect the broker you already use and ask Walnut's AI how STNG fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between STNG and TRMD?
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Scorpio Tankers Inc is one of the world's largest owners and operators of product tankers, the ships that carry refined petroleum products such as gasoline, diesel, jet fuel, and naphtha (as opposed to crude oil). TORM plc is a shipping company that owns and operates a fleet of product tankers, the vessels that carry refined petroleum products such as gasoline, jet fuel, diesel, naphtha, and gas oil, along with some dirty petroleum products. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is STNG or TRMD the better stock?
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Neither is universally better. STNG is the larger incumbent; TRMD is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, STNG or TRMD?
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On forward P/E (as of August 2026), STNG trades at 13.11x and TRMD at 6.78x, so TRMD is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both STNG and TRMD?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of STNG vs TRMD?
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STNG: The dominant risk is shipping cyclicality: Scorpio's revenue and profits are tied to product-tanker spot rates, which can fall sharply if refined-product demand weakens, trade routes shorten, or a wave of newbuild vessels expands supply. Because much of the fleet trades in the spot market, earnings and the cash that funds dividends and buybacks can drop quickly. Geopolitics cuts both ways: disruptions can lift rates, but a normalization of trade routes can compress them. Fuel costs, drydocking, regulation, and environmental rules add expense and uncertainty, and newbuild orders create future capital commitments. Even with a stronger balance sheet, this remains a volatile, capital-intensive business whose stock can move sharply with the freight cycle, and past strong rates are no guarantee of future ones. TRMD: TORM's earnings are highly cyclical and swing with product-tanker freight rates, which the company does not control and which depend on global refined-product demand, trade routing, vessel supply, and newbuild deliveries. Recent record results have leaned heavily on geopolitical disruption around the Strait of Hormuz and longer trade routes, and a return to calmer conditions could cut rates and profits sharply, as the drop from 2024 to 2025 already showed. The dividend is variable, not fixed, so the high trailing yield can fall quickly when earnings decline. The company also carries the debt, fuel-cost, regulatory, environmental, and geopolitical exposures common to shipping, and a wave of new tanker capacity or weaker oil demand could pressure rates for an extended period.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell STNG or TRMD; figures are approximate and dated (as of August 2026). Verify current data before investing.