Critical Analysis: CAI International (CAP) and Navios Maritime Holdings (NM)

Navios Maritime Holdings (NYSE: NM) and CAI International (NYSE:CAP) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Navios Maritime Holdings and CAI International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Navios Maritime Holdings $419.78 million 0.44 -$303.82 million ($0.85) -1.86
CAI International N/A N/A N/A $1.85 19.51

CAI International has higher revenue, but lower earnings than Navios Maritime Holdings. Navios Maritime Holdings is trading at a lower price-to-earnings ratio than CAI International, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Navios Maritime Holdings has a beta of 3.02, meaning that its stock price is 202% more volatile than the S&P 500. Comparatively, CAI International has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Navios Maritime Holdings and CAI International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Holdings 1 2 0 0 1.67
CAI International 0 0 0 0 N/A

Navios Maritime Holdings currently has a consensus price target of $1.25, indicating a potential downside of 20.89%. Given Navios Maritime Holdings’ higher probable upside, equities research analysts plainly believe Navios Maritime Holdings is more favorable than CAI International.

Profitability

This table compares Navios Maritime Holdings and CAI International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Holdings -20.64% -16.83% -4.61%
CAI International 19.51% 14.42% 3.16%

Institutional & Insider Ownership

21.1% of Navios Maritime Holdings shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Navios Maritime Holdings Company Profile

Navios Maritime Holdings Inc. (Navios Holdings) is a global, vertically integrated seaborne shipping and logistics company. The Company is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. It operates through two segments: the Dry bulk Vessel Operations and the Logistics Business. The Dry bulk Vessel Operations segment consists of the transportation and handling of bulk cargoes through the ownership, operation and trading of vessels, freight and forward freight agreements (FFAs). The Logistics Business segment consists of port terminal business, barge business and cabotage business in the Hidrovia region of South America. Navios Holdings also offers commercial and technical management services to the fleets of Navios Maritime Partners L.P., Navios Maritime Acquisition Corporation, Navios Maritime Midstream Partners L.P., Navios Europe Inc. and Navios Europe (II) Inc.

CAI International Company Profile

CAI International, Inc. is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers, and also manages equipment for third-party investors. The Company operates through three segments: container leasing, rail leasing and logistics. In operating the Company’s fleet, it leases, re-leases and disposes equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company leases its container equipment to lessees under long-term leases, short-term leases and finance leases. The Company’s long-term leases have terms of one year or more and specify the number of containers to be leased, the pick-up and drop-off locations.

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