Critical Comparison: Eagle Bulk Shipping (EGLE) vs. Nordic American Offshore (NAO)
Eagle Bulk Shipping (NASDAQ: EGLE) and Nordic American Offshore (NYSE:NAO) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitabiliy and risk.
This table compares Eagle Bulk Shipping and Nordic American Offshore’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Bulk Shipping||-131.02%||-15.35%||-9.59%|
|Nordic American Offshore||-230.37%||-14.04%||-8.96%|
This is a breakdown of recent ratings and recommmendations for Eagle Bulk Shipping and Nordic American Offshore, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Bulk Shipping||0||0||1||0||3.00|
|Nordic American Offshore||0||0||0||0||N/A|
Eagle Bulk Shipping presently has a consensus target price of $7.00, suggesting a potential upside of 62.04%. Given Eagle Bulk Shipping’s higher possible upside, equities analysts clearly believe Eagle Bulk Shipping is more favorable than Nordic American Offshore.
Nordic American Offshore pays an annual dividend of $0.08 per share and has a dividend yield of 6.7%. Eagle Bulk Shipping does not pay a dividend. Nordic American Offshore pays out -5.3% of its earnings in the form of a dividend.
Insider and Institutional Ownership
14.0% of Eagle Bulk Shipping shares are held by institutional investors. Comparatively, 31.5% of Nordic American Offshore shares are held by institutional investors. 0.4% of Eagle Bulk Shipping shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Eagle Bulk Shipping has a beta of 3.57, indicating that its share price is 257% more volatile than the S&P 500. Comparatively, Nordic American Offshore has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.
Valuation & Earnings
This table compares Eagle Bulk Shipping and Nordic American Offshore’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eagle Bulk Shipping||N/A||N/A||N/A||($13.63)||-0.32|
|Nordic American Offshore||$16.35 million||4.42||-$13.50 million||($1.51)||-0.79|
Eagle Bulk Shipping has higher revenue, but lower earnings than Nordic American Offshore. Nordic American Offshore is trading at a lower price-to-earnings ratio than Eagle Bulk Shipping, indicating that it is currently the more affordable of the two stocks.
Nordic American Offshore beats Eagle Bulk Shipping on 7 of the 12 factors compared between the two stocks.
Eagle Bulk Shipping Company Profile
Eagle Bulk Shipping Inc. is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. The Company operates in the Handymax sector of the dry bulk industry, with particular emphasis on the Supramax class of vessels. The Company owns Supramax dry bulk vessel. Supramax dry bulk vessels range in size from 50,000 to 60,000 deadweight tons. These vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of Panamax dry bulk vessels, which range in size from 60,000 to 100,000 deadweight tons and must rely on port facilities to load and offload their cargoes. On July 26, 2011 the Company sold its the Heron, a Supramax class of vessel.
Nordic American Offshore Company Profile
Nordic American Offshore Limited (NAO) operates platform supply vessels (PSV). The Company owns approximately eight vessels. The Company operates in the offshore support vessel market segment. The Company has approximately two vessels under construction. The Company’s vessels operate in the North Sea in both the term and spot market. The Company’s vessels include NAO Fighter, NAO Prosper, NAO Power, NAO Thunder, NAO Guardian, NAO Protector, NAO Storm and NAO Viking. Each of the Company’s vessels has a capacity of approximately 4,200 deadweight tonnage (DWT) and a cargo deck area of approximately 850 square meters. The Company’s vessels under construction include NAO Galaxy and NAO Horizon. Remoy Shipping AS and V. Ships Limited provide technical management for the Company’s vessels.
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