Critical Comparison: Danaos Corporation (DAC) and Euroseas (ESEA)
Danaos Corporation (NYSE: DAC) and Euroseas (NASDAQ:ESEA) are both small-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
Danaos Corporation has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
This table compares Danaos Corporation and Euroseas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Danaos Corporation and Euroseas, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaos Corporation presently has a consensus price target of $3.00, indicating a potential upside of 100.00%. Euroseas has a consensus price target of $3.00, indicating a potential upside of 52.28%. Given Danaos Corporation’s higher probable upside, equities analysts plainly believe Danaos Corporation is more favorable than Euroseas.
Valuation & Earnings
This table compares Danaos Corporation and Euroseas’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Danaos Corporation||$447.83 million||0.37||$281.14 million||($3.80)||-0.39|
|Euroseas||$32.84 million||0.67||$3.25 million||($3.15)||-0.63|
Danaos Corporation has higher revenue and earnings than Euroseas. Euroseas is trading at a lower price-to-earnings ratio than Danaos Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
1.9% of Danaos Corporation shares are held by institutional investors. Comparatively, 1.7% of Euroseas shares are held 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.
Danaos Corporation Company Profile
Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company’s principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company’s manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.
Euroseas Company Profile
Euroseas Ltd. is engaged in the shipping business. The Company is an owner and operator of drybulk and container carrier vessels and is a provider of seaborne transportation for drybulk and containerized cargoes. Eurobulk Ltd. manages the Company’s operations. The Company also owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal and grains, and minor bulks, such as bauxite, phosphate and fertilizers. The Company has a fleet of 12 vessels, including Kamsarmax drybulk carrier, Panamax drybulk carriers and Handymax drybulk carrier, Intermediate containerships, Handysize containerships, and Feeder containerships. The Company’s five drybulk carriers have a total cargo capacity of 351,272 deadweight tons (dwt), and its seven containerships have a cargo capacity of 11,828 twenty-foot equivalent units (teu).
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