Danaos Corporation (NYSE: DAC) and Hornbeck Offshore Services (NYSE:HOS) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
This table compares Danaos Corporation and Hornbeck Offshore Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hornbeck Offshore Services||-47.42%||-6.72%||-3.29%|
This table compares Danaos Corporation and Hornbeck Offshore Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Danaos Corporation||$447.83 million||0.36||$281.14 million||($3.80)||-0.38|
|Hornbeck Offshore Services||$175.31 million||0.85||$13.13 million||($2.27)||-1.78|
Danaos Corporation has higher revenue and earnings than Hornbeck Offshore Services. Hornbeck Offshore Services is trading at a lower price-to-earnings ratio than Danaos Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Danaos Corporation has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Hornbeck Offshore Services has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Danaos Corporation and Hornbeck Offshore Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hornbeck Offshore Services||0||3||0||0||2.00|
Danaos Corporation presently has a consensus target price of $3.00, indicating a potential upside of 106.90%. Hornbeck Offshore Services has a consensus target price of $3.50, indicating a potential downside of 13.15%. Given Danaos Corporation’s higher possible upside, analysts plainly believe Danaos Corporation is more favorable than Hornbeck Offshore Services.
Insider & Institutional Ownership
1.9% of Danaos Corporation shares are owned by institutional investors. Comparatively, 86.7% of Hornbeck Offshore Services shares are owned by institutional investors. 7.1% of Hornbeck Offshore Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Danaos Corporation beats Hornbeck Offshore Services on 6 of the 11 factors compared between the two stocks.
Danaos Corporation Company Profile
Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company’s principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company’s manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.
Hornbeck Offshore Services Company Profile
Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.
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