Seaspan Corporation (NYSE: SSW) and Diana Shipping inc. (NYSE:DSX) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Institutional and Insider Ownership
15.3% of Seaspan Corporation shares are owned by institutional investors. Comparatively, 37.3% of Diana Shipping inc. shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Seaspan Corporation has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Diana Shipping inc. has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
This table compares Seaspan Corporation and Diana Shipping inc.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diana Shipping inc.||-122.29%||-14.80%||-9.26%|
Valuation and Earnings
This table compares Seaspan Corporation and Diana Shipping inc.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seaspan Corporation||$844.00 million||1.01||$501.00 million||($1.67)||-4.33|
|Diana Shipping inc.||$124.18 million||3.11||-$403,499.00||($1.90)||-2.11|
Seaspan Corporation has higher revenue and earnings than Diana Shipping inc.. Seaspan Corporation is trading at a lower price-to-earnings ratio than Diana Shipping inc., indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Seaspan Corporation and Diana Shipping inc., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diana Shipping inc.||0||3||3||0||2.50|
Seaspan Corporation presently has a consensus price target of $6.79, indicating a potential downside of 6.15%. Diana Shipping inc. has a consensus price target of $5.19, indicating a potential upside of 29.69%. Given Diana Shipping inc.’s stronger consensus rating and higher probable upside, analysts plainly believe Diana Shipping inc. is more favorable than Seaspan Corporation.
Seaspan Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 6.9%. Diana Shipping inc. does not pay a dividend. Seaspan Corporation pays out -29.9% of its earnings in the form of a dividend. Seaspan Corporation has raised its dividend for 5 consecutive years.
Seaspan Corporation beats Diana Shipping inc. on 9 of the 15 factors compared between the two stocks.
Seaspan Corporation Company Profile
Seaspan Corporation is an independent charter owner and manager of containerships. The Company charters pursuant to long-term, fixed-rate time charters with various container liner companies. As of February 20, 2017, it had operated a fleet of 88 containerships and had entered into contracts for the purchase of an additional eight new building containerships. Its operating vessels include YM Wish, YM Wellhead, YM Witness, COSCO Glory, COSCO Development, COSCO Harmony, COSCO Excellence, COSCO Hope, COSCO Fortune, Seaspan Yangtze, CSCL Zeebrugge, CSCL Long Beach, CSCL Oceania, COSCO Vietnam, MOL Emissary, Seaspan Chiwan, Seaspan Ningbo, Seaspan Felixstowe, CSCL Brisbane, Seaspan Santos, Seaspan Loncomilla, Seaspan Lingue, CSCL Montevideo, CSCL Callao, Guayaquil Bridge and Calicanto Bridge. The Company is engaged in the operation and management of vessel, including maintaining the vessel, periodic dry-docking, cleaning and painting and performing work required by regulations.
Diana Shipping inc. Company Profile
Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company’s operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company’s fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.
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