Matson (NYSE: MATX) and Paragon Shipping (OTCMKTS:PRGNF) are both small-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Volatility & Risk
Matson has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Paragon Shipping has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
This table compares Matson and Paragon Shipping’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
84.2% of Matson shares are held by institutional investors. 2.6% of Matson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Matson pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Paragon Shipping does not pay a dividend. Matson pays out 41.2% of its earnings in the form of a dividend. Matson has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Matson and Paragon Shipping’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Matson||$1.94 billion||0.63||$80.50 million||$1.94||14.85|
|Paragon Shipping||$1.98 million||0.00||$23.78 million||($41,006.68)||0.00|
Matson has higher revenue and earnings than Paragon Shipping. Paragon Shipping is trading at a lower price-to-earnings ratio than Matson, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Matson and Paragon Shipping, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Matson presently has a consensus price target of $25.67, indicating a potential downside of 10.91%. Given Matson’s higher possible upside, equities analysts plainly believe Matson is more favorable than Paragon Shipping.
Matson beats Paragon Shipping on 14 of the 15 factors compared between the two stocks.
Matson Company Profile
Matson, Inc., through its subsidiaries, operates as an ocean cargo carrier. The company operates in two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean transportation services to the domestic economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia and in the South Pacific. This segment also operates an expedited service from China to Long Beach, California; and provides container and conventional freight services between New Zealand and other South Pacific Islands including Fiji, Samoa, American Samoa, Tonga, the Cook Islands, Niue, Vanuatu, Nauru, and the Solomon Islands. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; general sustenance cargo; and garments, footwear, and other retail merchandise. This segment also offers container stevedoring, container equipment maintenance, and other terminal services on the islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. It operates a fleet of 22 owned and 5 chartered vessels. The Logistics segment provides multimodal transportation services, including domestic and international rail intermodal service; long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, and expedited freight; and supply chain management, and warehousing and distribution services. This segment also offers freight forwarding, consolidation, customs brokerage, purchase order management, and non-vessel operating common carrier services. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii.
Paragon Shipping Company Profile
Paragon Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting drybulk cargoes, including commodities as iron ore, coal, grain and other materials, along shipping routes across the world. It focuses on newbuilding program, including over three Kamsarmax drybulk carriers with fleet carrying capacity of over 245,400 deadweight tons. Allseas Marine S.A. and Seacommercial Shipping Services S.A provide commercial and technical management services for its fleet. Its technical management services include arranging for and managing crews, maintaining regulatory and classification society compliance, and providing technical support. Its commercial management services include negotiating charters for its vessels, monitoring various types of charters, monitoring the performance of its vessels, financing and negotiating the purchase and sale of its vessels, and obtaining insurance for its vessels and finance and accounting functions.
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