Critical Analysis: Scorpio Bulkers (SALT) versus Diana Containerships (DCIX)
Scorpio Bulkers (NYSE: SALT) and Diana Containerships (NASDAQ:DCIX) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Risk and Volatility
Scorpio Bulkers has a beta of 3.61, meaning that its share price is 261% more volatile than the S&P 500. Comparatively, Diana Containerships has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500.
Earnings & Valuation
This table compares Scorpio Bulkers and Diana Containerships’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Scorpio Bulkers||$123.25 million||4.28||$610,000.00||($1.26)||-5.83|
|Diana Containerships||$22.70 million||0.01||-$10.89 million||($11,547.25)||0.00|
Scorpio Bulkers has higher revenue and earnings than Diana Containerships. Scorpio Bulkers is trading at a lower price-to-earnings ratio than Diana Containerships, indicating that it is currently the more affordable of the two stocks.
This table compares Scorpio Bulkers and Diana Containerships’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Scorpio Bulkers and Diana Containerships, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Scorpio Bulkers presently has a consensus target price of $9.54, indicating a potential upside of 29.82%. Given Scorpio Bulkers’ higher probable upside, equities analysts clearly believe Scorpio Bulkers is more favorable than Diana Containerships.
Insider & Institutional Ownership
44.0% of Scorpio Bulkers shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Scorpio Bulkers beats Diana Containerships on 11 of the 11 factors compared between the two stocks.
About Scorpio Bulkers
Scorpio Bulkers Inc. is a shipping company. The Company owns and operates newbuilding drybulk carriers with fuel-efficient specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). The Company operates through two segments: Kamsarmax and Ultramax. Its Kamsarmax segment includes vessels ranging from approximately 77,500 DWT to 98,700 DWT. Its Ultramax segment includes vessels ranging from approximately 60,200 DWT to 64,000 DWT. All of its owned vessels have carrying capacities of greater than 60,000 dwt. Its vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. As of December 31, 2016, its operating fleet of 48 vessels consisted of 47 drybulk vessels and one chartered-in drybulk vessel. It also has a contract for the construction of one newbuilding drybulk vessel.
About Diana Containerships
Diana Containerships Inc. is a holding company. The Company, through its subsidiaries, is engaged in the ownership of containerships. As of December 31, 2016, the Company’s fleet consisted of six panamax and six post-panamax containerships with a combined carrying capacity of 61,517 twenty-foot equivalent unit (TEU). As of December 31, 2016, the Company’s fleet included SAGITTA, CENTAURUS, NEW JERSEY, PAMINA, DOMINGO, DOUKATO, PUELO, PUCON, MARCH, GREAT and HAMBURG. The Company’s customers include national, regional and international companies. The Company charters its vessels to customers primarily pursuant to short-term and long-term time charters. As of December 31, 2016, its subsidiaries included Likiep Shipping Company Inc., Orangina Inc., Rongerik Shipping Company Inc., Dud Shipping Company Inc., Mago Shipping Company Inc., Eluk Shipping Company Inc., Oruk Shipping Company Inc., Meck Shipping Company Inc., Langor Shipping Company Inc. and Unitized Ocean Transport Limited.
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