Critical Review: Costamare (CMRE) & International Seaways (INSW)
Costamare (NYSE: CMRE) and International Seaways (NYSE:INSW) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
This is a summary of recent ratings and recommmendations for Costamare and International Seaways, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Costamare currently has a consensus price target of $8.50, indicating a potential upside of 43.82%. International Seaways has a consensus price target of $30.00, indicating a potential upside of 66.76%. Given International Seaways’ stronger consensus rating and higher probable upside, analysts clearly believe International Seaways is more favorable than Costamare.
This table compares Costamare and International Seaways’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.8%. International Seaways 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.
Insider and Institutional Ownership
27.0% of Costamare shares are owned by institutional investors. Comparatively, 86.3% of International Seaways shares are owned by institutional investors. 0.5% of International Seaways shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Costamare and International Seaways’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Costamare||$438.93 million||1.43||$280.04 million||$0.38||15.55|
|International Seaways||$327.29 million||1.61||$85.71 million||($3.50)||-5.14|
Costamare has higher revenue and earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.
Costamare beats International Seaways on 8 of the 15 factors compared between the two stocks.
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.
About International Seaways
International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company’s oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company’s segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.
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