StealthGas (GASS) & Costamare (CMRE) Head to Head Analysis

StealthGas (NASDAQ: GASS) and Costamare (NYSE:CMRE) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Insider and Institutional Ownership

60.6% of StealthGas shares are held by institutional investors. Comparatively, 25.6% of Costamare shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for StealthGas and Costamare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StealthGas 0 0 1 0 3.00
Costamare 0 3 2 0 2.40

StealthGas currently has a consensus price target of $7.00, suggesting a potential upside of 60.18%. Costamare has a consensus price target of $7.10, suggesting a potential upside of 14.15%. Given StealthGas’ stronger consensus rating and higher possible upside, equities research analysts clearly believe StealthGas is more favorable than Costamare.

Volatility and Risk

StealthGas has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Costamare has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Dividends

Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.4%. StealthGas does not pay a dividend. Costamare 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.

Valuation and Earnings

This table compares StealthGas and Costamare’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StealthGas $144.13 million 1.21 -$7.79 million ($0.16) -27.31
Costamare $468.19 million 1.42 $81.70 million $0.36 17.28

Costamare has higher revenue and earnings than StealthGas. StealthGas is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares StealthGas and Costamare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StealthGas -4.14% 1.06% 0.61%
Costamare 23.84% 6.23% 3.78%

Summary

Costamare beats StealthGas on 11 of the 15 factors compared between the two stocks.

StealthGas Company Profile

StealthGas Inc. is a provider of international seaborne transportation services to liquefied petroleum gas (LPG) producers and users, as well as crude oil and product carriers to oil producers, refineries and commodities traders. The Company owns a fleet of LPG carriers. Its LPG carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene and vinyl chloride monomer, which are all byproducts of the production of crude oil and natural gas. The medium range product carriers in its fleet are capable of carrying refined petroleum products, such as gasoline, diesel, fuel oil and jet fuel, as well as edible oils and chemicals, while its Aframax tanker is used for carrying crude oil. Its fleet consists of approximately 50 LPG carriers, including two chartered-in LPG carriers, two 2008-built product carriers, a 2009-built product carrier and a 2010-built Aframax crude oil tanker.

Costamare Company Profile

Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.

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