Danaos Corporation (NYSE: DAC) and Capital Product Partners L.P. (NASDAQ:CPLP) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Volatility & Risk
Danaos Corporation has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Capital Product Partners L.P. has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 8.9%. Danaos Corporation does not pay a dividend. Capital Product Partners L.P. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
1.9% of Danaos Corporation shares are held by institutional investors. Comparatively, 17.6% of Capital Product Partners L.P. 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.
This is a breakdown of current ratings and recommmendations for Danaos Corporation and Capital Product Partners L.P., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Product Partners L.P.||0||0||4||0||3.00|
Danaos Corporation currently has a consensus price target of $3.00, indicating a potential upside of 100.00%. Capital Product Partners L.P. has a consensus price target of $5.00, indicating a potential upside of 39.28%. Given Danaos Corporation’s higher probable upside, research analysts plainly believe Danaos Corporation is more favorable than Capital Product Partners L.P..
Valuation & Earnings
This table compares Danaos Corporation and Capital Product Partners L.P.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Danaos Corporation||$447.83 million||0.37||$281.14 million||($3.80)||-0.39|
|Capital Product Partners L.P.||$245.00 million||1.81||$160.90 million||$0.30||11.97|
Danaos Corporation has higher revenue and earnings than Capital Product Partners L.P.. Danaos Corporation is trading at a lower price-to-earnings ratio than Capital Product Partners L.P., indicating that it is currently the more affordable of the two stocks.
This table compares Danaos Corporation and Capital Product Partners L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Product Partners L.P.||18.20%||4.95%||2.80%|
Capital Product Partners L.P. beats Danaos Corporation on 9 of the 15 factors compared between the two stocks.
Danaos Corporation Company Profile
Danaos Corporation is a holding company and an international owner of containerships, chartering its vessels to a range of liner companies. The Company’s principal business is the acquisition and operation of vessels. The Company conducts its operations through the vessel owning companies, whose principal activity is the ownership and operation of containerships that are under the management of a related party of the company. The Company’s manager is Danaos Shipping Company Limited (Danaos Shipping). The Company has a fleet of over 50 containerships aggregating approximately 329,590 twenty-foot equivalent units (TEUs). Its containership fleet includes approximately 53 containerships deployed on time charters and approximately two containerships deployed on bareboat charter. Gemini Shipholdings Corporation (Gemini), a company beneficially owned by the Company, owns approximately four additional containerships of over 24,000 TEU aggregate capacity.
Capital Product Partners L.P. Company Profile
Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.
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