Navios Maritime Holdings (NYSE: NM) and Navios Maritime Midstream Partners (NYSE:NAP) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitabiliy, dividends and analyst recommendations.

Insider and Institutional Ownership

19.7% of Navios Maritime Holdings shares are held by institutional investors. Comparatively, 28.5% of Navios Maritime Midstream Partners shares are held by institutional investors. 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 Navios Maritime Holdings and Navios Maritime Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Holdings -20.55% -13.28% -4.27%
Navios Maritime Midstream Partners 21.97% 7.12% 4.09%

Dividends

Navios Maritime Midstream Partners pays an annual dividend of $1.69 per share and has a dividend yield of 16.8%. Navios Maritime Holdings does not pay a dividend. Navios Maritime Midstream Partners pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Navios Maritime Holdings and Navios Maritime Midstream Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navios Maritime Holdings $435.26 million 0.32 $79.40 million ($0.80) -1.50
Navios Maritime Midstream Partners $88.79 million 1.13 $60.54 million $1.04 9.66

Navios Maritime Holdings has higher revenue and earnings than Navios Maritime Midstream Partners. Navios Maritime Holdings is trading at a lower price-to-earnings ratio than Navios Maritime Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Navios Maritime Holdings has a beta of 2.94, indicating that its stock price is 194% more volatile than the S&P 500. Comparatively, Navios Maritime Midstream Partners has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Navios Maritime Holdings and Navios Maritime Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Holdings 1 1 0 0 1.50
Navios Maritime Midstream Partners 1 3 0 0 1.75

Navios Maritime Holdings currently has a consensus target price of $1.25, indicating a potential upside of 4.17%. Navios Maritime Midstream Partners has a consensus target price of $9.75, indicating a potential downside of 2.99%. Given Navios Maritime Holdings’ higher possible upside, equities research analysts plainly believe Navios Maritime Holdings is more favorable than Navios Maritime Midstream Partners.

Summary

Navios Maritime Midstream Partners beats Navios Maritime Holdings on 8 of the 13 factors compared between the two stocks.

About Navios Maritime Holdings

Navios Maritime Holdings Inc. (Navios Holdings) is a global, vertically integrated seaborne shipping and logistics company. The Company is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. It operates through two segments: the Dry bulk Vessel Operations and the Logistics Business. The Dry bulk Vessel Operations segment consists of the transportation and handling of bulk cargoes through the ownership, operation and trading of vessels, freight and forward freight agreements (FFAs). The Logistics Business segment consists of port terminal business, barge business and cabotage business in the Hidrovia region of South America. Navios Holdings also offers commercial and technical management services to the fleets of Navios Maritime Partners L.P., Navios Maritime Acquisition Corporation, Navios Maritime Midstream Partners L.P., Navios Europe Inc. and Navios Europe (II) Inc.

About Navios Maritime Midstream Partners

Navios Maritime Midstream Partners L.P. (Navios Midstream) is a holding company. The Company’s principal activity is to own, operate and acquire crude oil tankers under long-term employment contracts, as well as refined petroleum product tankers, chemical tankers, and liquefied petroleum gas (LPG) tankers under long-term employment contracts. The Company focuses to charter its vessels under long-term employment contracts to international oil companies, refiners and large vessel operators. As of December 31, 2016, the Company had a fleet consists of six very large crude carriers (VLCCs), which had an average remaining employment term of approximately 4.2 years. Its VLCC vessels include Shinyo Ocean, Shinyo Kannika, Shinyo Saowalak, Shinyo Kieran, C. Dream and Nave Celeste. The Company also provides seaborne shipping services under long-term time charters.

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