Critical Analysis: Golden Ocean Group (GOGL) vs. Pyxis Tankers (PXS)

Golden Ocean Group (NASDAQ: GOGL) and Pyxis Tankers (NASDAQ:PXS) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Golden Ocean Group and Pyxis Tankers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golden Ocean Group 0 1 6 0 2.86
Pyxis Tankers 0 0 2 0 3.00

Golden Ocean Group currently has a consensus price target of $11.33, indicating a potential upside of 30.12%. Pyxis Tankers has a consensus price target of $3.25, indicating a potential upside of 127.27%. Given Pyxis Tankers’ stronger consensus rating and higher probable upside, analysts clearly believe Pyxis Tankers is more favorable than Golden Ocean Group.

Institutional and Insider Ownership

25.0% of Golden Ocean Group shares are held by institutional investors. Comparatively, 0.1% of Pyxis Tankers shares are held by institutional investors. 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.

Profitability

This table compares Golden Ocean Group and Pyxis Tankers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golden Ocean Group -5.79% -1.74% -0.89%
Pyxis Tankers -32.43% -20.58% -7.50%

Valuation and Earnings

This table compares Golden Ocean Group and Pyxis Tankers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golden Ocean Group $257.81 million 4.73 -$127.71 million ($0.21) -41.47
Pyxis Tankers $30.71 million 0.97 -$5.81 million ($0.52) -2.75

Pyxis Tankers has lower revenue, but higher earnings than Golden Ocean Group. Golden Ocean Group is trading at a lower price-to-earnings ratio than Pyxis Tankers, indicating that it is currently the more affordable of the two stocks.

Summary

Golden Ocean Group beats Pyxis Tankers on 8 of the 11 factors compared between the two stocks.

Golden Ocean Group Company Profile

Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.

Pyxis Tankers Company Profile

Pyxis Tankers Inc. is a holding company. The Company is an international maritime transportation company focused on the product tanker sector. It owns a fleet of six double hull product tankers: Pyxis Epsilon with carrying capacity of approximately 50,300 deadweight tonnage (dwt); Pyxis Theta with carrying capacity of approximately 51,800 dwt, Pyxis Malou with carrying capacity of over 50,670 dwt; Pyxis Delta with carrying capacity of approximately 46,620 dwt; Northsea Beta with carrying capacity of over 8,650 dwt, and Northsea Alpha with carrying capacity of approximately 8,615 dwt. Four of the Company’s vessels in the fleet are medium-range (MR), product tankers, three have eco-efficient or eco-modified designs, and two of them are short-range tanker sister ships. Its fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals.

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