Head to Head Analysis: Global Ship Lease (GSL) & Capital Product Partners (CPLP)

Global Ship Lease (NYSE: GSL) and Capital Product Partners (NASDAQ:CPLP) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Dividends

Capital Product Partners pays an annual dividend of $0.32 per share and has a dividend yield of 10.3%. Global Ship Lease does not pay a dividend. Capital Product Partners pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Global Ship Lease has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Capital Product Partners has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Global Ship Lease and Capital Product Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Ship Lease -18.63% 3.08% 1.36%
Capital Product Partners 14.31% 4.17% 2.50%

Valuation and Earnings

This table compares Global Ship Lease and Capital Product Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Ship Lease $166.52 million 0.39 -$65.09 million ($0.68) -1.72
Capital Product Partners $249.12 million 1.58 $38.48 million $0.22 14.14

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

Analyst Recommendations

This is a summary of current ratings and price targets for Global Ship Lease and Capital Product Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Ship Lease 0 0 0 0 N/A
Capital Product Partners 0 0 1 0 3.00

Capital Product Partners has a consensus price target of $5.00, indicating a potential upside of 60.77%. Given Capital Product Partners’ higher probable upside, analysts clearly believe Capital Product Partners is more favorable than Global Ship Lease.

Institutional & Insider Ownership

5.4% of Global Ship Lease shares are owned by institutional investors. Comparatively, 18.6% of Capital Product Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Capital Product Partners beats Global Ship Lease on 13 of the 14 factors compared between the two stocks.

Global Ship Lease Company Profile

Global Ship Lease, Inc. is a holding company and containership charter owner. The Company’s activity consists of the ownership and chartering out of containerships. It owns a fleet of containerships with a range of sizes. Its fleet comprises over 20 containerships, with a combined capacity of over 82,310 twenty-foot equivalent unit (TEU) and a weighted average age of over 11.0 years, and a non-weighted average age of over 11.3 years. Its vessels include CMA CGM Matisse, CMA CGM Utrillo, Delmas Keta, Julie Delmas, Kumasi, Marie Delmas, CMA CGM La Tour, CMA CGM Manet, CMA CGM Alcazar, CMA CGM Chateau d’If, CMA CGM Thalassa, CMA CGM Jamaica, CMA CGM Sambhar and CMA CGM America. Approximately 10 vessels are owned by companies incorporated in Cyprus; over four by companies incorporated in Hong Kong, and approximately one is held by another Marshall Islands company. Its subsidiary, Global Ship Lease Services Limited, provides administrative services.

Capital Product Partners Company Profile

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.

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