Analyzing Genco Shipping & Trading (GNK) and Its Rivals

Genco Shipping & Trading (NYSE:GNK) is one of 80 publicly-traded companies in the “Marine Transportation” industry, but how does it contrast to its peers? We will compare Genco Shipping & Trading to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Insider and Institutional Ownership

58.6% of Genco Shipping & Trading shares are held by institutional investors. Comparatively, 30.4% of shares of all “Marine Transportation” companies are held by institutional investors. 2.4% of Genco Shipping & Trading shares are held by company insiders. Comparatively, 27.2% of shares of all “Marine Transportation” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Genco Shipping & Trading and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Genco Shipping & Trading	$342.05 million	-$4.37 million	28.73
Genco Shipping & Trading Competitors	$3.68 billion	$344.91 million	13.57

Genco Shipping & Trading’s peers have higher revenue and earnings than Genco Shipping & Trading. Genco Shipping & Trading is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Genco Shipping & Trading has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Genco Shipping & Trading’s peers have a beta of 1.05, suggesting that their average stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Genco Shipping & Trading and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genco Shipping & Trading	9.15%	6.46%	4.83%
Genco Shipping & Trading Competitors	30.74%	13.51%	6.67%

Dividends

Genco Shipping & Trading pays an annual dividend of $3.20 per share and has a dividend yield of 12.2%. Genco Shipping & Trading pays out 351.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Marine Transportation” companies pay a dividend yield of 4.4% and pay out 26.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Genco Shipping & Trading and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genco Shipping & Trading	1	2	2	0	2.20
Genco Shipping & Trading Competitors	447	1655	1700	93	2.37

Genco Shipping & Trading presently has a consensus target price of $29.00, indicating a potential upside of 10.94%. As a group, “Marine Transportation” companies have a potential upside of 9.25%. Given Genco Shipping & Trading’s higher probable upside, equities research analysts clearly believe Genco Shipping & Trading is more favorable than its peers.

Summary

Genco Shipping & Trading peers beat Genco Shipping & Trading on 11 of the 15 factors compared.

About Genco Shipping & Trading

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.