Diana Shipping (DSX) and Baltic Trading (BALT) Financial Analysis

Diana Shipping (NYSE: DSX) 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 profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Institutional & Insider Ownership

37.5% of Diana Shipping shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Diana Shipping and Baltic Trading’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diana Shipping -69.54% -9.26% -5.77%
Baltic Trading -613.08% -49.39% -30.66%

Valuation and Earnings

This table compares Diana Shipping and Baltic Trading’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diana Shipping $114.26 million 3.70 -$164.23 million ($1.90) -2.09
Baltic Trading N/A N/A N/A ($1.14) -1.37

Baltic Trading has lower revenue, but higher earnings than Diana Shipping. Diana Shipping is trading at a lower price-to-earnings ratio than Baltic Trading, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Diana Shipping and Baltic Trading, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diana Shipping 0 5 3 0 2.38
Baltic Trading 0 0 0 0 N/A

Diana Shipping currently has a consensus price target of $5.10, indicating a potential upside of 28.14%. Given Diana Shipping’s higher possible upside, equities analysts clearly believe Diana Shipping is more favorable than Baltic Trading.

Volatility and Risk

Diana Shipping has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Baltic Trading has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Diana Shipping beats Baltic Trading on 8 of the 10 factors compared between the two stocks.

Diana Shipping Company Profile

Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company’s operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company’s fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.

Baltic Trading Company Profile

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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