Contrasting Baltic Trading (BALT) and Ardmore Shipping (NYSE:ASC)

Baltic Trading (NYSE: BALT) and Ardmore Shipping (NYSE:ASC) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

75.6% of Ardmore Shipping shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Baltic Trading and Ardmore Shipping, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baltic Trading 0 0 0 0 N/A
Ardmore Shipping 0 1 4 0 2.80

Ardmore Shipping has a consensus price target of $10.70, indicating a potential upside of 32.92%. Given Ardmore Shipping’s higher probable upside, analysts clearly believe Ardmore Shipping is more favorable than Baltic Trading.

Risk & Volatility

Baltic Trading has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Ardmore Shipping has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Baltic Trading -613.08% -49.39% -30.66%
Ardmore Shipping -6.45% -3.08% -1.41%

Valuation and Earnings

This table compares Baltic Trading and Ardmore Shipping’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baltic Trading N/A N/A N/A ($1.14) -1.37
Ardmore Shipping $164.40 million 1.64 $3.74 million ($0.37) -21.76

Ardmore Shipping has higher revenue and earnings than Baltic Trading. Ardmore 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.

Summary

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

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.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.

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