Genco Shipping & Trading (NYSE:GNK) and Ardmore Shipping (NYSE:ASC) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Profitability
This table compares Genco Shipping & Trading and Ardmore Shipping's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Genco Shipping & Trading | -43.05% | -2.43% | -1.51% |
Ardmore Shipping | 6.45% | 4.78% | 2.07% |
Earnings and Valuation
This table compares Genco Shipping & Trading and Ardmore Shipping's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Genco Shipping & Trading | $389.50 million | 1.10 | $-55,990,000.00 | ($0.67) | -15.25 |
Ardmore Shipping | $230.04 million | 0.61 | $-22,860,000.00 | ($0.28) | -15.00 |
Ardmore Shipping has lower revenue, but higher earnings than Genco Shipping & Trading. Genco Shipping & Trading is trading at a lower price-to-earnings ratio than Ardmore Shipping, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Genco Shipping & Trading has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Ardmore Shipping has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Insider & Institutional Ownership
79.6% of Genco Shipping & Trading shares are owned by institutional investors. Comparatively, 79.5% of Ardmore Shipping shares are owned by institutional investors. 1.8% of Genco Shipping & Trading shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Genco Shipping & Trading and Ardmore Shipping, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Genco Shipping & Trading | 0 | 1 | 4 | 0 | 2.80 |
Ardmore Shipping | 1 | 1 | 2 | 0 | 2.25 |
Genco Shipping & Trading currently has a consensus price target of $9.9750, suggesting a potential downside of 2.40%. Ardmore Shipping has a consensus price target of $5.30, suggesting a potential upside of 26.19%. Given Ardmore Shipping's higher possible upside, analysts clearly believe Ardmore Shipping is more favorable than Genco Shipping & Trading.
Summary
Ardmore Shipping beats Genco Shipping & Trading on 8 of the 14 factors compared between the two stocks.