Danaos (NYSE: DAC) and Baltic Trading (NYSE:BALT) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Institutional & Insider Ownership
2.0% of Danaos shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Danaos has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Baltic Trading has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Danaos and Baltic Trading, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaos presently has a consensus price target of $3.00, indicating a potential upside of 106.90%. Given Danaos’ higher possible upside, equities research analysts plainly believe Danaos is more favorable than Baltic Trading.
This table compares Danaos and Baltic Trading’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Danaos and Baltic Trading’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Danaos||$498.33 million||0.32||-$366.19 million||($3.52)||-0.41|
Baltic Trading has lower revenue, but higher earnings than Danaos. Baltic Trading is trading at a lower price-to-earnings ratio than Danaos, indicating that it is currently the more affordable of the two stocks.
Danaos beats Baltic Trading on 7 of the 9 factors compared between the two stocks.
Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company’s principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company’s manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.
About Baltic Trading
Baltic Trading Limited is a shipping business focused on the drybulk industry spot market. The Company’s fleet consists of four Capesize vessels, two Ultramax vessels, four Supramax vessels and five Handysize vessels with an aggregate carrying capacity of approximately 1,221,000 deadweight tons. Its fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. It operates a fleet of drybulk ships that transport iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes around the world. It operates its vessels on spot market-related time charters, short-term time charters or in vessel pools trading in the spot market. Genco Shipping & Trading Limited (Genco) serves as the Company’s manager. Genco provides it with commercial and strategic management of its fleet.
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