Ardmore Shipping (NYSE: ASC) and Diana Containerships (NASDAQ:DCIX) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Risk and Volatility

Ardmore Shipping has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Diana Containerships has a beta of 3.13, indicating that its stock price is 213% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ardmore Shipping and Diana Containerships’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardmore Shipping $164.40 million 1.59 $3.74 million ($0.37) -21.08
Diana Containerships $33.19 million 0.48 -$149.01 million $4,573.13 0.00

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ardmore Shipping and Diana Containerships, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardmore Shipping 0 1 4 0 2.80
Diana Containerships 0 0 0 0 N/A

Ardmore Shipping currently has a consensus target price of $10.70, suggesting a potential upside of 37.18%. Given Ardmore Shipping’s higher possible upside, research analysts clearly believe Ardmore Shipping is more favorable than Diana Containerships.

Profitability

This table compares Ardmore Shipping and Diana Containerships’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardmore Shipping -6.45% -3.08% -1.41%
Diana Containerships 55.69% -26.32% -11.21%

Insider & Institutional Ownership

75.7% of Ardmore Shipping shares are owned by institutional investors. Comparatively, 0.8% of Diana Containerships shares are owned 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.

Summary

Ardmore Shipping beats Diana Containerships on 8 of the 12 factors compared between the two stocks.

About Ardmore Shipping

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.

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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