Head-To-Head Review: Costamare (CMRE) versus Capital Product Partners L.P. (CPLP)

Capital Product Partners L.P. (NASDAQ: CPLP) and Costamare (NYSE:CMRE) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Earnings & Valuation

This table compares Capital Product Partners L.P. and Costamare’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Capital Product Partners L.P. N/A N/A N/A $0.30 11.63
Costamare $438.93 million 1.47 $280.04 million $0.38 16.05

Costamare has higher revenue and earnings than Capital Product Partners L.P.. Capital Product Partners L.P. is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Capital Product Partners L.P. and Costamare, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Product Partners L.P. 0 0 4 0 3.00
Costamare 0 3 2 0 2.40

Capital Product Partners L.P. presently has a consensus target price of $5.00, indicating a potential upside of 43.27%. Costamare has a consensus target price of $7.30, indicating a potential upside of 19.67%. Given Capital Product Partners L.P.’s stronger consensus rating and higher probable upside, equities analysts plainly believe Capital Product Partners L.P. is more favorable than Costamare.

Profitability

This table compares Capital Product Partners L.P. and Costamare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Product Partners L.P. 18.20% 4.95% 2.80%
Costamare 12.70% 8.94% 3.83%

Volatility & Risk

Capital Product Partners L.P. has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Costamare has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.

Insider & Institutional Ownership

17.6% of Capital Product Partners L.P. shares are held by institutional investors. Comparatively, 27.0% of Costamare shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 9.2%. Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.6%. Capital Product Partners L.P. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Costamare pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Costamare beats Capital Product Partners L.P. on 7 of the 13 factors compared between the two stocks.

About Capital Product Partners L.P.

Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.

About Costamare

Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.

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