A.P. Moller-Maersk (OTCMKTS:AMKBY) versus Diana Shipping (NYSE:DSX) Critical Contrast

Diana Shipping (NYSE:DSX) and A.P. Moller-Maersk (OTCMKTS:AMKBY) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Diana Shipping and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diana Shipping	9.36%	4.09%	1.76%
A.P. Moller-Maersk	12.11%	12.33%	8.09%

Risk and Volatility

Diana Shipping has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Dividends

Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 2.4%. A.P. Moller-Maersk pays an annual dividend of $0.52 per share and has a dividend yield of 5.4%. Diana Shipping pays out 66.7% of its earnings in the form of a dividend. A.P. Moller-Maersk pays out 33.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. A.P. Moller-Maersk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

48.7% of Diana Shipping shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Diana Shipping and A.P. Moller-Maersk”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diana Shipping	$224.19 million	0.87	$12.75 million	$0.06	28.08
A.P. Moller-Maersk	$55.48 billion	0.55	$6.11 billion	$1.57	6.17

A.P. Moller-Maersk has higher revenue and earnings than Diana Shipping. A.P. Moller-Maersk is trading at a lower price-to-earnings ratio than Diana Shipping, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Diana Shipping and A.P. Moller-Maersk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diana Shipping	1	0	0	0	1.00
A.P. Moller-Maersk	4	1	0	1	1.67

Summary

A.P. Moller-Maersk beats Diana Shipping on 11 of the 14 factors compared between the two stocks.

About Diana Shipping

Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of March 1, 2024, it operated a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 9 Ultramax, and 6 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.

About A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.