DAC vs. FRO, STNG, TRMD, ZIM, SBLK, CDLR, LPG, SFL, DHT, and CMRE
Should you be buying Danaos stock or one of its competitors? The main competitors of Danaos include Frontline (FRO), Scorpio Tankers (STNG), TORM (TRMD), ZIM Integrated Shipping Services (ZIM), Star Bulk Carriers (SBLK), Cadeler A/S (CDLR), Dorian LPG (LPG), SFL (SFL), DHT (DHT), and Costamare (CMRE). These companies are all part of the "deep sea foreign transportation of freight" industry.
Danaos (NYSE:DAC) and Frontline (NYSE:FRO) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, media sentiment, profitability, institutional ownership, community ranking, analyst recommendations and risk.
Danaos pays an annual dividend of $3.20 per share and has a dividend yield of 3.4%. Frontline pays an annual dividend of $1.48 per share and has a dividend yield of 5.6%. Danaos pays out 10.9% of its earnings in the form of a dividend. Frontline pays out 51.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Frontline received 266 more outperform votes than Danaos when rated by MarketBeat users. Likewise, 58.25% of users gave Frontline an outperform vote while only 56.10% of users gave Danaos an outperform vote.
In the previous week, Frontline had 1 more articles in the media than Danaos. MarketBeat recorded 4 mentions for Frontline and 3 mentions for Danaos. Frontline's average media sentiment score of 1.13 beat Danaos' score of 0.60 indicating that Frontline is being referred to more favorably in the news media.
Danaos has a net margin of 59.04% compared to Frontline's net margin of 32.94%. Frontline's return on equity of 23.14% beat Danaos' return on equity.
Frontline has higher revenue and earnings than Danaos. Danaos is trading at a lower price-to-earnings ratio than Frontline, indicating that it is currently the more affordable of the two stocks.
19.0% of Danaos shares are held by institutional investors. Comparatively, 22.7% of Frontline shares are held by institutional investors. 41.0% of Danaos shares are held by insiders. Comparatively, 48.1% of Frontline shares are held by insiders. 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.
Danaos presently has a consensus target price of $105.00, suggesting a potential upside of 11.35%. Frontline has a consensus target price of $26.10, suggesting a potential downside of 0.57%. Given Danaos' stronger consensus rating and higher possible upside, equities research analysts clearly believe Danaos is more favorable than Frontline.
Danaos has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Frontline has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.
Summary
Frontline beats Danaos on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DAC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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