Star Bulk Carriers (NASDAQ: SBLK) and Capital Product Partners (NASDAQ:CPLP) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Risk & Volatility
Star Bulk Carriers has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500. Comparatively, Capital Product Partners has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
70.5% of Star Bulk Carriers shares are held by institutional investors. Comparatively, 18.6% of Capital Product Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Star Bulk Carriers and Capital Product Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Star Bulk Carriers||$222.11 million||3.04||-$154.22 million||($1.12)||-9.38|
|Capital Product Partners||$249.12 million||1.64||$52.48 million||$0.22||14.68|
Capital Product Partners has higher revenue and earnings than Star Bulk Carriers. Star Bulk Carriers is trading at a lower price-to-earnings ratio than Capital Product Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Star Bulk Carriers and Capital Product Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Star Bulk Carriers||-23.09%||-4.04%||-2.04%|
|Capital Product Partners||14.31%||4.17%||2.50%|
Capital Product Partners pays an annual dividend of $0.32 per share and has a dividend yield of 9.9%. Star Bulk Carriers does not pay a dividend. Capital Product Partners pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations and price targets for Star Bulk Carriers and Capital Product Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Star Bulk Carriers||0||1||6||0||2.86|
|Capital Product Partners||0||0||1||0||3.00|
Star Bulk Carriers currently has a consensus target price of $13.20, suggesting a potential upside of 25.59%. Capital Product Partners has a consensus target price of $5.00, suggesting a potential upside of 54.80%. Given Capital Product Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Capital Product Partners is more favorable than Star Bulk Carriers.
Capital Product Partners beats Star Bulk Carriers on 10 of the 15 factors compared between the two stocks.
Star Bulk Carriers Company Profile
Star Bulk Carriers Corp. is an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. As of December 31, 2016, the Company’s fleet included 73 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 and 209,537 deadweight tonnage (dwt). The Company’s vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes across the world. The Company’s fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company’s Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia, and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia.
Capital Product Partners 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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