Star Bulk Carriers (NASDAQ: SBLK) and Baltic Trading (NYSE:BALT) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
70.4% of Star Bulk Carriers shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Star Bulk Carriers has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500. Comparatively, Baltic Trading has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Earnings and Valuation
This table compares Star Bulk Carriers and Baltic Trading’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Star Bulk Carriers||$222.11 million||3.18||-$154.22 million||($1.87)||-5.89|
Baltic Trading has lower revenue, but higher earnings than Star Bulk Carriers. Star Bulk Carriers is trading at a lower price-to-earnings ratio than Baltic Trading, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Star Bulk Carriers and Baltic Trading, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Star Bulk Carriers||0||1||6||0||2.86|
Star Bulk Carriers presently has a consensus target price of $13.20, suggesting a potential upside of 19.78%. Given Star Bulk Carriers’ higher possible upside, analysts plainly believe Star Bulk Carriers is more favorable than Baltic Trading.
This table compares Star Bulk Carriers and Baltic Trading’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Star Bulk Carriers||-23.09%||-4.04%||-2.05%|
Star Bulk Carriers beats Baltic Trading on 8 of the 10 factors compared between the two stocks.
About Star Bulk Carriers
Star Bulk Carriers Corp. is an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. As of December 31, 2016, the Company’s fleet included 73 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 and 209,537 deadweight tonnage (dwt). The Company’s vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes across the world. The Company’s fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company’s Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia, and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia.
About Baltic Trading
Baltic Trading Limited is a shipping business focused on the drybulk industry spot market. The Company’s fleet consists of four Capesize vessels, two Ultramax vessels, four Supramax vessels and five Handysize vessels with an aggregate carrying capacity of approximately 1,221,000 deadweight tons. Its fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. It operates a fleet of drybulk ships that transport iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes around the world. It operates its vessels on spot market-related time charters, short-term time charters or in vessel pools trading in the spot market. Genco Shipping & Trading Limited (Genco) serves as the Company’s manager. Genco provides it with commercial and strategic management of its fleet.
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