Danaos (NYSE:DAC) and Castor Maritime (NASDAQ:CTRM) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
23.5% of Danaos shares are held by institutional investors. 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.
This table compares Danaos and Castor Maritime’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Danaos has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Castor Maritime has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
Valuation & Earnings
This table compares Danaos and Castor Maritime’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Danaos||$447.24 million||2.29||$131.25 million||$9.17||5.47|
|Castor Maritime||$5.97 million||72.72||$1.09 million||N/A||N/A|
Danaos has higher revenue and earnings than Castor Maritime.
This is a breakdown of current recommendations and price targets for Danaos and Castor Maritime, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaos presently has a consensus target price of $44.42, indicating a potential downside of 11.50%. Given Danaos’ higher possible upside, analysts clearly believe Danaos is more favorable than Castor Maritime.
Danaos beats Castor Maritime on 10 of the 11 factors compared between the two stocks.
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, 2021, it had a fleet of 65 containerships aggregating 403,793 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.
About Castor Maritime
Castor Maritime Inc., through its subsidiaries, engages in ocean transportation of dry bulk cargoes worldwide. It provides seaborne transportation services for dry bulk cargo, including iron ore, coal, grains, steel products, fertilizers, cement, bauxite, sugar, and scrap metals. The company operates three Panamax vessels with a carrying capacity of approximately 76,122 deadweight ton. Castor Maritime Inc. was founded in 2016 and is based in Limassol, Cyprus.
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