Ship Finance International (NYSE:SFL) and COSTAMARE INC/SH (NYSE:CMRE) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Valuation & Earnings
This table compares Ship Finance International and COSTAMARE INC/SH’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ship Finance International||$380.88 million||4.04||$101.20 million||$1.19||10.54|
|COSTAMARE INC/SH||$380.40 million||1.57||$67.23 million||$0.42||11.98|
Ship Finance International has higher revenue and earnings than COSTAMARE INC/SH. Ship Finance International is trading at a lower price-to-earnings ratio than COSTAMARE INC/SH, indicating that it is currently the more affordable of the two stocks.
Ship Finance International pays an annual dividend of $1.40 per share and has a dividend yield of 11.2%. COSTAMARE INC/SH pays an annual dividend of $0.40 per share and has a dividend yield of 8.0%. Ship Finance International pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COSTAMARE INC/SH pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ship Finance International has increased its dividend for 7 consecutive years. Ship Finance International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Ship Finance International has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, COSTAMARE INC/SH has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500.
This is a summary of recent recommendations for Ship Finance International and COSTAMARE INC/SH, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ship Finance International||0||2||4||0||2.67|
Ship Finance International presently has a consensus price target of $13.63, suggesting a potential upside of 8.72%. COSTAMARE INC/SH has a consensus price target of $7.50, suggesting a potential upside of 49.11%. Given COSTAMARE INC/SH’s higher probable upside, analysts plainly believe COSTAMARE INC/SH is more favorable than Ship Finance International.
Insider and Institutional Ownership
29.3% of Ship Finance International shares are owned by institutional investors. Comparatively, 23.9% of COSTAMARE INC/SH shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Ship Finance International and COSTAMARE INC/SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ship Finance International||22.77%||9.68%||3.62%|
Ship Finance International beats COSTAMARE INC/SH on 12 of the 16 factors compared between the two stocks.
Ship Finance International Company Profile
Ship Finance International Limited owns and operates vessels and offshore related assets primarily in Bermuda, Cyprus, Malta, Liberia, Norway, the United Kingdom, and the Marshall Islands. It is also involved in the charter, purchase, and sale of assets. In addition, the company operates in various sectors of the shipping and offshore industry, including oil transportation, dry bulk shipments, chemical transportation, oil product transportation, container transportation, car transportation, drilling rigs, and offshore supply vessels. As of August 22, 2018, it had a fleet of approximately 80 vessels, including tankers, bulkers, container vessels, and offshore assets. The company was founded in 2003 and is based in Hamilton, Bermuda.
COSTAMARE INC/SH Company Profile
Costamare Inc. owns and charters containerships to liner companies worldwide. As of February 23, 2018, it had a fleet of 71 containerships with a total capacity of approximately 466,000 twenty foot equivalent unit (TEU), including 64 vessels in the water, aggregating approximately 462,000 TEU; and 1 new build vessel of 3,800 TEU. The company was founded in 1974 and is based in Monaco.
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