Head-To-Head Analysis: Dorian LPG (NYSE:LPG) and Danaos (NYSE:DAC)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Dorian LPG and Danaos, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorian LPG 0 0 2 0 3.00
Danaos 0 0 0 0 N/A

Dorian LPG presently has a consensus price target of $15.65, indicating a potential upside of 26.82%. Given Dorian LPG’s higher probable upside, equities research analysts clearly believe Dorian LPG is more favorable than Danaos.

Institutional & Insider Ownership

58.4% of Dorian LPG shares are held by institutional investors. Comparatively, 22.1% of Danaos shares are held by institutional investors. 26.8% of Dorian LPG shares are held by insiders. 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.

Earnings and Valuation

This table compares Dorian LPG and Danaos’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorian LPG $158.03 million 4.26 -$50.95 million N/A N/A
Danaos $458.73 million 0.39 -$32.94 million $12.32 0.95

Danaos has higher revenue and earnings than Dorian LPG.

Risk & Volatility

Dorian LPG has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Danaos has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Dorian LPG and Danaos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorian LPG 10.16% 4.52% 2.56%
Danaos -18.46% 19.88% 5.54%

Summary

Dorian LPG beats Danaos on 7 of the 12 factors compared between the two stocks.

About Dorian LPG

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide. It owns and operates very large gas carriers (VLGCs). As of June 26, 2018, its fleet consisted of 22 VLGCs with carrying capacity of approximately 1.8 million cubic meters. The company was founded in 2013 and is headquartered in Stamford, Connecticut.

About Danaos

Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2019, it had a fleet of 55 containerships aggregating 327,616 twenty foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1972 and is based in Piraeus, Greece.

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