Critical Comparison: Danaos (NYSE:DAC) and C3is (NASDAQ:CISS)

C3is (NASDAQ:CISS) and Danaos (NYSE:DAC) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares C3is and Danaos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3is	32.33%	19.85%	13.77%
Danaos	59.19%	19.94%	16.01%

Institutional and Insider Ownership

10.5% of C3is shares are owned by institutional investors. Comparatively, 19.0% of Danaos shares are owned by institutional investors. 41.0% of Danaos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for C3is and Danaos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3is	0	0	0	0	N/A
Danaos	0	0	1	0	3.00

Danaos has a consensus target price of $90.00, suggesting a potential upside of 24.88%. Given Danaos’ higher probable upside, analysts plainly believe Danaos is more favorable than C3is.

Valuation & Earnings

This table compares C3is and Danaos’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C3is	$28.74 million	0.02	$9.29 million	N/A	N/A
Danaos	$973.58 million	1.44	$576.30 million	$28.96	2.49

Danaos has higher revenue and earnings than C3is.

Summary

Danaos beats C3is on 10 of the 10 factors compared between the two stocks.

About C3is

C3is Inc. provides international seaborne transportation services. It provides its services to dry bulk charterers, including national and private industrial users, commodity producers and traders, oil producers, refineries, and commodities traders and producers. The company owns and operates a fleet of two drybulk carriers, which transport major bulks, such as iron ore, coal and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers, and one Aframax crude oil tanker that transports crude oil. C3is Inc. was founded in 2021 and is based in Athens, Greece.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.