Head to Head Analysis: Ardmore Shipping Corporation (ASC) vs. Golden Ocean Group Limited (GOGL)
Ardmore Shipping Corporation (NYSE: ASC) and Golden Ocean Group Limited (NASDAQ:GOGL) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Valuation and Earnings
This table compares Ardmore Shipping Corporation and Golden Ocean Group Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ardmore Shipping Corporation||$180.66 million||1.37||$43.97 million||($0.37)||-19.86|
|Golden Ocean Group Limited||$339.88 million||3.50||$78.55 million||($0.46)||-19.52|
Golden Ocean Group Limited has higher revenue and earnings than Ardmore Shipping Corporation. Ardmore Shipping Corporation is trading at a lower price-to-earnings ratio than Golden Ocean Group Limited, indicating that it is currently the more affordable of the two stocks.
This table compares Ardmore Shipping Corporation and Golden Ocean Group Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ardmore Shipping Corporation||-6.92%||-2.35%||-1.08%|
|Golden Ocean Group Limited||-14.69%||-3.91%||-2.02%|
Institutional & Insider Ownership
76.5% of Ardmore Shipping Corporation shares are held by institutional investors. Comparatively, 10.5% of Golden Ocean Group Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Ardmore Shipping Corporation has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Golden Ocean Group Limited has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500.
This is a summary of recent recommendations for Ardmore Shipping Corporation and Golden Ocean Group Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ardmore Shipping Corporation||0||1||4||0||2.80|
|Golden Ocean Group Limited||0||0||6||0||3.00|
Ardmore Shipping Corporation currently has a consensus price target of $10.50, indicating a potential upside of 42.86%. Golden Ocean Group Limited has a consensus price target of $11.33, indicating a potential upside of 26.21%. Given Ardmore Shipping Corporation’s higher probable upside, equities research analysts plainly believe Ardmore Shipping Corporation is more favorable than Golden Ocean Group Limited.
Ardmore Shipping Corporation Company Profile
Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.
Golden Ocean Group Limited Company Profile
Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.
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