Star Bulk Carriers (NASDAQ:SBLK) and Genco Shipping & Trading (NYSE:GNK) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
68.0% of Star Bulk Carriers shares are held by institutional investors. Comparatively, 87.7% of Genco Shipping & Trading shares are held by institutional investors. 1.2% of Genco Shipping & Trading shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Star Bulk Carriers and Genco Shipping & Trading’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Star Bulk Carriers||$331.98 million||2.37||-$9.77 million||($0.22)||-52.95|
|Genco Shipping & Trading||$209.70 million||2.13||-$58.72 million||($1.29)||-8.34|
Star Bulk Carriers has higher revenue and earnings than Genco Shipping & Trading. Star Bulk Carriers is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Star Bulk Carriers and Genco Shipping & Trading, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Star Bulk Carriers||0||0||6||0||3.00|
|Genco Shipping & Trading||1||1||6||0||2.63|
Star Bulk Carriers currently has a consensus price target of $17.17, indicating a potential upside of 47.35%. Genco Shipping & Trading has a consensus price target of $18.79, indicating a potential upside of 74.59%. Given Genco Shipping & Trading’s higher probable upside, analysts clearly believe Genco Shipping & Trading is more favorable than Star Bulk Carriers.
Risk and Volatility
Star Bulk Carriers has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500.
This table compares Star Bulk Carriers and Genco Shipping & Trading’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Star Bulk Carriers||8.39%||3.73%||1.88%|
|Genco Shipping & Trading||-29.58%||-0.59%||-0.39%|
Star Bulk Carriers beats Genco Shipping & Trading on 9 of the 13 factors compared between the two stocks.
About Star Bulk Carriers
Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products. As of August 29, 2018, the company had a fleet of 111 vessels with an aggregate capacity of approximately 12.67 million deadweight ton (dwt), including 17 Newcastlemax, 20 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 16 Ultramax, and 12 Supramax vessels. It also provides vessel management services to dry bulk vessels of various sizes. The company was incorporated in 2006 and is based in Maroussi, Greece.
About Genco Shipping & Trading
Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company, through the ownership and operation of dry bulk carrier vessels, transports iron ores, coal, grains, steel products, and other dry-bulk cargoes. The company charters its vessels primarily to trading houses, such as commodities traders; producers; and government-owned entities. As of August 15, 2018, it had fleet of 15 Capesize, 5 Panamax, 5 Ultramax, 21 Supramax, 1 Handymax, and 15 Handysize drybulk carriers with an aggregate carrying capacity of approximately 5,039,000 deadweight tons. Genco Shipping & Trading Limited was founded in 2004 and is based in New York, New York.
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