Safe Bulkers (NYSE: SB) and Diana Shipping inc. (NYSE:DSX) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Safe Bulkers and Diana Shipping inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safe Bulkers -26.74% -3.34% -1.61%
Diana Shipping inc. -122.29% -14.80% -9.26%

Earnings and Valuation

This table compares Safe Bulkers and Diana Shipping inc.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Safe Bulkers $127.17 million 2.21 $59.75 million ($0.57) -4.86
Diana Shipping inc. $124.18 million 2.99 -$403,499.00 ($1.90) -2.02

Safe Bulkers has higher revenue and earnings than Diana Shipping inc.. Safe Bulkers is trading at a lower price-to-earnings ratio than Diana Shipping inc., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Safe Bulkers and Diana Shipping inc., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safe Bulkers 0 4 3 0 2.43
Diana Shipping inc. 1 5 2 0 2.13

Safe Bulkers presently has a consensus target price of $3.19, suggesting a potential upside of 15.07%. Diana Shipping inc. has a consensus target price of $4.65, suggesting a potential upside of 21.09%. Given Diana Shipping inc.’s higher probable upside, analysts clearly believe Diana Shipping inc. is more favorable than Safe Bulkers.

Volatility and Risk

Safe Bulkers has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, Diana Shipping inc. has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

16.5% of Safe Bulkers shares are held by institutional investors. Comparatively, 34.7% of Diana Shipping inc. shares are held by institutional investors. 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.

Summary

Safe Bulkers beats Diana Shipping inc. on 9 of the 12 factors compared between the two stocks.

About Safe Bulkers

Safe Bulkers, Inc. is a holding company. The Company’s principal business is the acquisition, ownership and operation of drybulk vessels. The Company’s vessels operate across the world, carrying drybulk cargo for the consumers of marine drybulk transportation services. The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along shipping routes across the world. As of February 17, 2017 the Company’s fleet included 38 vessels, of which 14 are Panamax class vessels, nine are Kamsarmax class vessels, 12 are Post-Panamax class vessels and three are Capesize class vessels, with an aggregate carrying capacity of 3,421,800 deadweight tonnage (dwt). The Company’s fleet of Post-Panamax vessels includes Marina, Xenia, Sophia, Eleni, Martine, Andreas K, Panayiota K, Venus Heritage, Venus History, Venus Horizon and Troodos Sun. Its fleet of Capesize vessels includes Kanaris, Pelopidas and Lake Despina.

About Diana Shipping inc.

Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company’s operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company’s fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.

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