DryShips (NASDAQ: DRYS) and StealthGas (NASDAQ:GASS) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Institutional and Insider Ownership
6.4% of DryShips shares are owned by institutional investors. Comparatively, 62.7% of StealthGas 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.
This table compares DryShips and StealthGas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares DryShips and StealthGas’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DryShips||$46.72 million||0.02||-$36.42 million||($273,305.91)||0.00|
|StealthGas||$145.72 million||0.84||$53.43 million||($0.16)||-19.25|
StealthGas has higher revenue and earnings than DryShips. StealthGas is trading at a lower price-to-earnings ratio than DryShips, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
DryShips has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500. Comparatively, StealthGas has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
DryShips pays an annual dividend of $0.28 per share and has a dividend yield of 8.4%. StealthGas does not pay a dividend. DryShips pays out 0.0% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for DryShips and StealthGas, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
StealthGas has a consensus target price of $5.50, indicating a potential upside of 78.57%. Given StealthGas’ higher possible upside, analysts clearly believe StealthGas is more favorable than DryShips.
StealthGas beats DryShips on 10 of the 13 factors compared between the two stocks.
DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.
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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