Pyxis Tankers (NASDAQ: PXS) and Seaspan Corporation (NYSE:SSW) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

0.1% of Pyxis Tankers shares are owned by institutional investors. Comparatively, 15.3% of Seaspan Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Pyxis Tankers and Seaspan Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pyxis Tankers -31.98% -19.86% -7.47%
Seaspan Corporation 14.23% 7.23% 2.31%

Dividends

Seaspan Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 7.9%. Pyxis Tankers does not pay a dividend. Seaspan Corporation pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seaspan Corporation has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Pyxis Tankers and Seaspan Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pyxis Tankers $30.71 million 1.12 -$5.81 million ($0.53) -3.55
Seaspan Corporation $877.91 million 0.85 -$139.03 million $0.45 14.11

Pyxis Tankers has higher revenue, but lower earnings than Seaspan Corporation. Pyxis Tankers is trading at a lower price-to-earnings ratio than Seaspan Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Pyxis Tankers and Seaspan Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pyxis Tankers 0 0 2 0 3.00
Seaspan Corporation 3 5 0 0 1.63

Pyxis Tankers presently has a consensus target price of $3.75, indicating a potential upside of 99.47%. Seaspan Corporation has a consensus target price of $6.79, indicating a potential upside of 6.86%. Given Pyxis Tankers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Pyxis Tankers is more favorable than Seaspan Corporation.

Volatility & Risk

Pyxis Tankers has a beta of 5.86, indicating that its share price is 486% more volatile than the S&P 500. Comparatively, Seaspan Corporation has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Seaspan Corporation beats Pyxis Tankers on 8 of the 15 factors compared between the two stocks.

About Pyxis Tankers

Pyxis Tankers Inc. is a holding company. The Company is an international maritime transportation company focused on the product tanker sector. It owns a fleet of six double hull product tankers: Pyxis Epsilon with carrying capacity of approximately 50,300 deadweight tonnage (dwt); Pyxis Theta with carrying capacity of approximately 51,800 dwt, Pyxis Malou with carrying capacity of over 50,670 dwt; Pyxis Delta with carrying capacity of approximately 46,620 dwt; Northsea Beta with carrying capacity of over 8,650 dwt, and Northsea Alpha with carrying capacity of approximately 8,615 dwt. Four of the Company’s vessels in the fleet are medium-range (MR), product tankers, three have eco-efficient or eco-modified designs, and two of them are short-range tanker sister ships. Its fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals.

About Seaspan Corporation

Seaspan Corporation is an independent charter owner and manager of containerships. The Company charters pursuant to long-term, fixed-rate time charters with various container liner companies. As of February 20, 2017, it had operated a fleet of 88 containerships and had entered into contracts for the purchase of an additional eight new building containerships. Its operating vessels include YM Wish, YM Wellhead, YM Witness, COSCO Glory, COSCO Development, COSCO Harmony, COSCO Excellence, COSCO Hope, COSCO Fortune, Seaspan Yangtze, CSCL Zeebrugge, CSCL Long Beach, CSCL Oceania, COSCO Vietnam, MOL Emissary, Seaspan Chiwan, Seaspan Ningbo, Seaspan Felixstowe, CSCL Brisbane, Seaspan Santos, Seaspan Loncomilla, Seaspan Lingue, CSCL Montevideo, CSCL Callao, Guayaquil Bridge and Calicanto Bridge. The Company is engaged in the operation and management of vessel, including maintaining the vessel, periodic dry-docking, cleaning and painting and performing work required by regulations.

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