Head-To-Head Contrast: EuroDry (NASDAQ:EDRY) vs. Castor Maritime (NASDAQ:CTRM)

Castor Maritime (NASDAQ:CTRM) and EuroDry (NASDAQ:EDRY) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Profitability

This table compares Castor Maritime and EuroDry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Castor Maritime	103.17%	3.34%	2.50%
EuroDry	-0.55%	-0.88%	-0.43%

Analyst Recommendations

This is a summary of recent ratings and target prices for Castor Maritime and EuroDry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Castor Maritime	1	0	0	0	1.00
EuroDry	1	0	1	1	2.67

EuroDry has a consensus price target of $23.50, indicating a potential downside of 5.62%. Given EuroDry’s stronger consensus rating and higher possible upside, analysts clearly believe EuroDry is more favorable than Castor Maritime.

Insider and Institutional Ownership

1.1% of Castor Maritime shares are owned by institutional investors. Comparatively, 2.4% of EuroDry shares are owned by institutional investors. 51.4% of EuroDry shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Castor Maritime and EuroDry”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Castor Maritime	$81.81 million	0.22	$19.27 million	$1.40	1.33
EuroDry	$52.26 million	1.38	-$4.26 million	($0.13)	-191.54

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

Volatility & Risk

Castor Maritime has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, EuroDry has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Summary

Castor Maritime beats EuroDry on 8 of the 15 factors compared between the two stocks.

About Castor Maritime

Castor Maritime Inc. provides shipping services worldwide. The company operates through Dry Bulk Vessels and Containerships segments. It offers seaborne transportation services for dry bulk cargo; and commodities, such as iron ore, coal, soybeans, etc. As of December 31, 2023, the company owned and operated a fleet of 17 vessels primarily consisting of one Capesize, five Kamsarmax, two Handysize tanker vessels, and nine Panamax dry bulk vessels, as well as two 2,700 TEU containership vessels. Castor Maritime Inc. was incorporated in 2017 and is based in Limassol, Cyprus.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.