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

Profitability

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

Net Margins Return on Equity Return on Assets
DryShips -218.76% -49.79% -27.33%
Diana Shipping inc. -122.29% -14.80% -9.26%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DryShips and Diana Shipping inc., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DryShips 0 0 0 0 N/A
Diana Shipping inc. 0 5 3 0 2.38

Diana Shipping inc. has a consensus target price of $5.19, indicating a potential upside of 30.34%. Given Diana Shipping inc.’s higher possible upside, analysts plainly believe Diana Shipping inc. is more favorable than DryShips.

Institutional and Insider Ownership

6.7% of DryShips shares are owned by institutional investors. Comparatively, 37.3% of Diana Shipping inc. shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

DryShips has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Diana Shipping inc. has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Dividends

DryShips pays an annual dividend of $0.28 per share and has a dividend yield of 11.0%. Diana Shipping inc. does not pay a dividend. DryShips pays out 0.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares DryShips and Diana Shipping inc.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DryShips $49.93 million 0.01 -$31.37 million ($113,582.83) 0.00
Diana Shipping inc. $124.18 million 3.10 -$403,499.00 ($1.90) -2.09

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

Summary

Diana Shipping inc. beats DryShips on 10 of the 13 factors compared between the two stocks.

DryShips Company Profile

DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.

Diana Shipping inc. Company Profile

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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