Hornbeck Offshore Services (NYSE: HOS) and Costamare (NYSE:CMRE) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Hornbeck Offshore Services has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Costamare has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.

Institutional & Insider Ownership

86.7% of Hornbeck Offshore Services shares are owned by institutional investors. Comparatively, 27.2% of Costamare shares are owned by institutional investors. 7.1% of Hornbeck Offshore Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Hornbeck Offshore Services and Costamare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hornbeck Offshore Services 0 4 0 0 2.00
Costamare 0 4 3 0 2.43

Hornbeck Offshore Services presently has a consensus target price of $4.75, suggesting a potential upside of 52.24%. Costamare has a consensus target price of $8.50, suggesting a potential upside of 47.06%. Given Hornbeck Offshore Services’ higher probable upside, equities analysts plainly believe Hornbeck Offshore Services is more favorable than Costamare.

Earnings and Valuation

This table compares Hornbeck Offshore Services and Costamare’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hornbeck Offshore Services $175.31 million 0.66 $13.13 million ($2.27) -1.37
Costamare $438.93 million 1.40 $280.04 million $0.38 15.21

Costamare has higher revenue and earnings than Hornbeck Offshore Services. Hornbeck Offshore Services is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.

Dividends

Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.9%. Hornbeck Offshore Services does not pay a dividend. Costamare pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Hornbeck Offshore Services and Costamare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hornbeck Offshore Services -47.42% -6.72% -3.29%
Costamare 12.70% 8.94% 3.83%

Summary

Costamare beats Hornbeck Offshore Services on 11 of the 15 factors compared between the two stocks.

Hornbeck Offshore Services Company Profile

Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.

Costamare Company Profile

Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.

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