DryShips (NASDAQ: DRYS) and Costamare (NYSE:CMRE) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Institutional & Insider Ownership
2.2% of DryShips shares are held by institutional investors. Comparatively, 25.6% of Costamare shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares DryShips and Costamare’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Costamare has higher revenue and earnings than DryShips. DryShips 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 DryShips and Costamare’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Risk & Volatility
DryShips has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Costamare has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.
DryShips pays an annual dividend of $0.10 per share and has a dividend yield of 2.8%. Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.3%. DryShips pays out 0.0% of its earnings in the form of 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 summary of current ratings and target prices for DryShips and Costamare, as provided by MarketBeat.
||Strong Buy Ratings
Costamare has a consensus target price of $7.10, suggesting a potential upside of 12.16%. Given Costamare’s higher probable upside, analysts clearly believe Costamare is more favorable than DryShips.
Costamare beats DryShips on 11 of the 14 factors compared between the two stocks.
DryShips Company Profile
DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.
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.
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