Critical Analysis: Castor Maritime (NASDAQ:CTRM) & Danaos (NYSE:DAC)

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

Earnings and Valuation

This table compares Danaos and Castor Maritime’s gross revenue, earnings per share 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.

Profitability

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
Danaos 31.89% 17.25% 6.00%
Castor Maritime -4.18% -1.54% -0.91%

Risk & Volatility

Danaos has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Castor Maritime has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Institutional and Insider Ownership

23.5% of Danaos shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Danaos and Castor Maritime, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Danaos 0 1 2 0 2.67
Castor Maritime 0 0 0 0 N/A

Danaos presently has a consensus price target of $44.42, suggesting a potential downside of 11.50%. Given Danaos’ higher possible upside, equities analysts plainly believe Danaos is more favorable than Castor Maritime.

Summary

Danaos beats Castor Maritime on 10 of the 11 factors compared between the two stocks.

Danaos Company Profile

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.

Castor Maritime Company Profile

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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