Baltic Trading (NYSE: BALT) and StealthGas (NASDAQ:GASS) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
This table compares Baltic Trading and StealthGas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Baltic Trading and StealthGas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
StealthGas has a consensus target price of $7.00, suggesting a potential upside of 65.09%. Given StealthGas’ higher possible upside, analysts plainly believe StealthGas is more favorable than Baltic Trading.
Valuation & Earnings
This table compares Baltic Trading and StealthGas’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|StealthGas||$154.31 million||1.10||-$1.22 million||($0.03)||-141.33|
Baltic Trading has higher earnings, but lower revenue than StealthGas. StealthGas is trading at a lower price-to-earnings ratio than Baltic Trading, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
62.4% of StealthGas shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Baltic Trading has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, StealthGas has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.
StealthGas beats Baltic Trading on 9 of the 10 factors compared between the two stocks.
Baltic Trading Company Profile
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.
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.
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