Costamare (NYSE: CMRE) and Baltic Trading (NYSE:BALT) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Costamare has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Baltic Trading has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 7.1%. Baltic Trading does not pay a dividend. Costamare pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings for Costamare and Baltic Trading, as provided by MarketBeat.
||Strong Buy Ratings
Costamare presently has a consensus price target of $7.10, indicating a potential upside of 25.44%. Given Costamare’s higher probable upside, equities research analysts plainly believe Costamare is more favorable than Baltic Trading.
Valuation & Earnings
This table compares Costamare and Baltic Trading’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Costamare has higher revenue and earnings than Baltic Trading. Baltic Trading is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.
This table compares Costamare and Baltic Trading’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional and Insider Ownership
25.8% of Costamare shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Costamare beats Baltic Trading on 10 of the 11 factors compared between the two stocks.
Costamare Company Profile
Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.
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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