Financial Contrast: Hornbeck Offshore Services (HOS) and Golden Ocean Group Limited (GOGL)
Hornbeck Offshore Services (NYSE: HOS) and Golden Ocean Group Limited (NASDAQ:GOGL) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
This table compares Hornbeck Offshore Services and Golden Ocean Group Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hornbeck Offshore Services||-47.42%||-6.72%||-3.29%|
|Golden Ocean Group Limited||-14.69%||-3.91%||-2.02%|
Earnings and Valuation
This table compares Hornbeck Offshore Services and Golden Ocean Group Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hornbeck Offshore Services||$175.31 million||0.79||$13.13 million||($2.27)||-1.66|
|Golden Ocean Group Limited||$339.88 million||3.17||$79.55 million||($0.46)||-18.11|
Golden Ocean Group Limited has higher revenue and earnings than Hornbeck Offshore Services. Golden Ocean Group Limited is trading at a lower price-to-earnings ratio than Hornbeck Offshore Services, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hornbeck Offshore Services has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Golden Ocean Group Limited has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.
Institutional and Insider Ownership
86.6% of Hornbeck Offshore Services shares are owned by institutional investors. Comparatively, 10.5% of Golden Ocean Group Limited shares are owned by institutional investors. 7.1% of Hornbeck Offshore Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Hornbeck Offshore Services and Golden Ocean Group Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hornbeck Offshore Services||0||3||0||0||2.00|
|Golden Ocean Group Limited||0||1||6||0||2.86|
Hornbeck Offshore Services presently has a consensus price target of $3.50, suggesting a potential downside of 6.91%. Golden Ocean Group Limited has a consensus price target of $11.33, suggesting a potential upside of 36.05%. Given Golden Ocean Group Limited’s stronger consensus rating and higher probable upside, analysts plainly believe Golden Ocean Group Limited is more favorable than Hornbeck Offshore Services.
Golden Ocean Group Limited beats Hornbeck Offshore Services on 11 of the 13 factors compared between the two stocks.
About Hornbeck Offshore Services
Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.
About Golden Ocean Group Limited
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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