Financial Survey: Scorpio Bulkers (SALT) versus Navios Maritime Partners (NMM)

Scorpio Bulkers (NYSE: SALT) and Navios Maritime Partners (NYSE:NMM) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Scorpio Bulkers and Navios Maritime Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scorpio Bulkers $78.40 million 7.07 -$124.83 million ($1.11) -6.62
Navios Maritime Partners $190.52 million 1.76 -$52.54 million $0.01 227.23

Navios Maritime Partners has higher revenue and earnings than Scorpio Bulkers. Scorpio Bulkers is trading at a lower price-to-earnings ratio than Navios Maritime Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Scorpio Bulkers and Navios Maritime Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scorpio Bulkers -57.43% -6.51% -3.97%
Navios Maritime Partners 2.79% 2.53% 1.49%

Risk and Volatility

Scorpio Bulkers has a beta of 3.57, meaning that its share price is 257% more volatile than the S&P 500. Comparatively, Navios Maritime Partners has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Dividends

Scorpio Bulkers pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Navios Maritime Partners does not pay a dividend. Scorpio Bulkers pays out -1.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Scorpio Bulkers and Navios Maritime Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scorpio Bulkers 0 2 4 0 2.67
Navios Maritime Partners 0 2 1 0 2.33

Scorpio Bulkers presently has a consensus price target of $9.71, suggesting a potential upside of 32.09%. Navios Maritime Partners has a consensus price target of $2.17, suggesting a potential downside of 4.55%. Given Scorpio Bulkers’ stronger consensus rating and higher probable upside, equities analysts clearly believe Scorpio Bulkers is more favorable than Navios Maritime Partners.

Institutional & Insider Ownership

40.3% of Scorpio Bulkers shares are held by institutional investors. Comparatively, 15.3% of Navios Maritime Partners 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.

Summary

Scorpio Bulkers beats Navios Maritime Partners on 8 of the 15 factors compared between the two stocks.

About Scorpio Bulkers

Scorpio Bulkers Inc. is a shipping company. The Company owns and operates newbuilding drybulk carriers with fuel-efficient specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). The Company operates through two segments: Kamsarmax and Ultramax. Its Kamsarmax segment includes vessels ranging from approximately 77,500 DWT to 98,700 DWT. Its Ultramax segment includes vessels ranging from approximately 60,200 DWT to 64,000 DWT. All of its owned vessels have carrying capacities of greater than 60,000 dwt. Its vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. As of December 31, 2016, its operating fleet of 48 vessels consisted of 47 drybulk vessels and one chartered-in drybulk vessel. It also has a contract for the construction of one newbuilding drybulk vessel.

About Navios Maritime Partners

Navios Maritime Partners L.P. is an international owner and operator of dry cargo and container vessels. The Company is engaged in the seaborne transportation services of a range of dry cargo commodities, including iron ore, coal, grain and fertilizer, and also containers, chartering its vessels under medium to long-term charters. It focuses on providing seaborne shipping services under long-term time charters. As of December 31, 2016, it controlled 12 Panamax vessels, nine Capesize vessels, three Ultra-Handymax vessels and seven container vessels. Panamax vessels are vessels capable of carrying a range of dry cargo commodities, including iron ore, coal, grain and fertilizer and being accommodated in various discharge ports. Capesize vessels are dedicated to the carriage of iron ore and coal. Ultra-Handymax vessels are similar to Panamax vessels although with less carrying capacity, and have self-loading and discharging gear on board to accommodate undeveloped ports.

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