Analyzing Danaos Corporation (DAC) & Pyxis Tankers (PXS)

Danaos Corporation (NYSE: DAC) and Pyxis Tankers (NASDAQ:PXS) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Danaos Corporation and Pyxis Tankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Danaos Corporation -92.96% 16.72% 3.09%
Pyxis Tankers -31.98% -19.86% -7.47%

Analyst Recommendations

This is a breakdown of recent ratings for Danaos Corporation and Pyxis Tankers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Danaos Corporation 0 2 0 0 2.00
Pyxis Tankers 0 0 2 0 3.00

Danaos Corporation currently has a consensus target price of $3.00, indicating a potential upside of 114.29%. Pyxis Tankers has a consensus target price of $3.75, indicating a potential upside of 97.37%. Given Danaos Corporation’s higher probable upside, equities analysts plainly believe Danaos Corporation is more favorable than Pyxis Tankers.

Valuation & Earnings

This table compares Danaos Corporation and Pyxis Tankers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Danaos Corporation $447.83 million 0.34 $281.14 million ($3.80) -0.37
Pyxis Tankers $30.54 million 1.14 $2.41 million ($0.53) -3.58

Danaos Corporation has higher revenue and earnings than Pyxis Tankers. Pyxis Tankers is trading at a lower price-to-earnings ratio than Danaos Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

1.9% of Danaos Corporation shares are owned by institutional investors. Comparatively, 0.1% of Pyxis Tankers shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Danaos Corporation has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Pyxis Tankers has a beta of 6.2, meaning that its stock price is 520% more volatile than the S&P 500.

Danaos Corporation Company Profile

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.

Pyxis Tankers Company Profile

Pyxis Tankers Inc. is a holding company. The Company is an international maritime transportation company focused on the product tanker sector. It owns a fleet of six double hull product tankers: Pyxis Epsilon with carrying capacity of approximately 50,300 deadweight tonnage (dwt); Pyxis Theta with carrying capacity of approximately 51,800 dwt, Pyxis Malou with carrying capacity of over 50,670 dwt; Pyxis Delta with carrying capacity of approximately 46,620 dwt; Northsea Beta with carrying capacity of over 8,650 dwt, and Northsea Alpha with carrying capacity of approximately 8,615 dwt. Four of the Company’s vessels in the fleet are medium-range (MR), product tankers, three have eco-efficient or eco-modified designs, and two of them are short-range tanker sister ships. Its fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals.

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