Critical Analysis: CAI International (NYSE:CAI) & Navios Maritime Midstream Partners (NAP)

CAI International (NYSE: CAI) and Navios Maritime Midstream Partners (NYSE:NAP) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Institutional & Insider Ownership

58.4% of CAI International shares are owned by institutional investors. Comparatively, 27.9% of Navios Maritime Midstream Partners shares are owned by institutional investors. 24.5% of CAI International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CAI International and Navios Maritime Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAI International 0 2 1 0 2.33
Navios Maritime Midstream Partners 1 2 0 0 1.67

CAI International presently has a consensus target price of $26.00, indicating a potential downside of 5.83%. Navios Maritime Midstream Partners has a consensus target price of $10.33, indicating a potential upside of 25.86%. Given Navios Maritime Midstream Partners’ higher possible upside, analysts clearly believe Navios Maritime Midstream Partners is more favorable than CAI International.

Volatility & Risk

CAI International has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, Navios Maritime Midstream Partners has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Profitability

This table compares CAI International and Navios Maritime Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAI International 4.14% 4.13% 0.93%
Navios Maritime Midstream Partners 18.41% 5.73% 3.29%

Dividends

Navios Maritime Midstream Partners pays an annual dividend of $1.69 per share and has a dividend yield of 20.6%. CAI International does not pay a dividend. Navios Maritime Midstream Partners pays out 196.5% 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 & Earnings

This table compares CAI International and Navios Maritime Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CAI International $319.94 million 1.65 $63.93 million $0.68 40.60
Navios Maritime Midstream Partners $84.60 million 2.03 $56.46 million $0.86 9.55

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

Summary

CAI International beats Navios Maritime Midstream Partners on 9 of the 16 factors compared between the two stocks.

CAI International Company Profile

CAI International, Inc. is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers, and also manages equipment for third-party investors. The Company operates through three segments: container leasing, rail leasing and logistics. In operating the Company’s fleet, it leases, re-leases and disposes equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company leases its container equipment to lessees under long-term leases, short-term leases and finance leases. The Company’s long-term leases have terms of one year or more and specify the number of containers to be leased, the pick-up and drop-off locations.

Navios Maritime Midstream Partners Company Profile

Navios Maritime Midstream Partners L.P. (Navios Midstream) is a holding company. The Company’s principal activity is to own, operate and acquire crude oil tankers under long-term employment contracts, as well as refined petroleum product tankers, chemical tankers, and liquefied petroleum gas (LPG) tankers under long-term employment contracts. The Company focuses to charter its vessels under long-term employment contracts to international oil companies, refiners and large vessel operators. As of December 31, 2016, the Company had a fleet consists of six very large crude carriers (VLCCs), which had an average remaining employment term of approximately 4.2 years. Its VLCC vessels include Shinyo Ocean, Shinyo Kannika, Shinyo Saowalak, Shinyo Kieran, C. Dream and Nave Celeste. The Company also provides seaborne shipping services under long-term time charters.

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