Contrasting Capital Product Partners (CPLP) and Genco Shipping & Trading (GNK)

Genco Shipping & Trading (NASDAQ: CPLP) and Capital Product Partners (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 profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

72.0% of Genco Shipping & Trading shares are owned by institutional investors. Comparatively, 18.3% of Capital Product Partners shares are owned by institutional investors. 1.2% of Genco Shipping & Trading shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Genco Shipping & Trading and Capital Product Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genco Shipping & Trading 0 1 5 0 2.83
Capital Product Partners 0 0 1 0 3.00

Genco Shipping & Trading presently has a consensus target price of $18.25, suggesting a potential upside of 38.36%. Capital Product Partners has a consensus target price of $5.00, suggesting a potential upside of 65.56%. Given Capital Product Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Capital Product Partners is more favorable than Genco Shipping & Trading.

Volatility and Risk

Genco Shipping & Trading has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500. Comparatively, Capital Product Partners has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Dividends

Capital Product Partners pays an annual dividend of $0.32 per share and has a dividend yield of 10.6%. Genco Shipping & Trading does not pay a dividend. Capital Product Partners pays out 128.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Genco Shipping & Trading and Capital Product Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genco Shipping & Trading -29.58% -0.60% -0.39%
Capital Product Partners 8.86% 2.90% 1.75%

Valuation & Earnings

This table compares Genco Shipping & Trading and Capital Product Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genco Shipping & Trading $209.70 million 2.61 -$58.72 million ($1.29) -10.22
Capital Product Partners $249.12 million 1.57 $38.48 million $0.25 12.08

Capital Product Partners has higher revenue and earnings than Genco Shipping & Trading. Genco Shipping & Trading 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.

Summary

Capital Product Partners beats Genco Shipping & Trading on 11 of the 16 factors compared between the two stocks.

Genco Shipping & Trading Company Profile

Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company, through the ownership and operation of dry bulk carrier vessels, transports iron ores, coal, grains, steel products, and other dry-bulk cargoes. The company charters its vessels primarily to trading houses, such as commodities traders; producers; and government-owned entities. Its fleet consists of 60 drybulk carriers, including 13 Capesize, 6 Panamax, 4 Ultramax, 21 Supramax, 1 Handymax, and 15 Handysize drybulk carriers with an aggregate carrying capacity of approximately 4,688,000 deadweight tons. Genco Shipping & Trading Limited was founded in 2004 and is based in New York, New York.

Capital Product Partners Company Profile

Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece. It transports a range of cargoes, including crude oil; refined oil products, such as gasoline, diesel, fuel oil and jet fuel; edible oils; chemicals, such as ethanol; and dry cargo and containerized goods under short-term voyage charters, and medium to long-term time and bareboat charters. As of December 31, 2017, the company had a fleet of 36 vessels, which consisted of 4 Suezmax crude oil tankers, 21 medium range tankers, 10 post-panamax container vessels, and 1 capesize bulk carrier. Capital GP L.L.C. serves as the general partner of the company. Capital Product Partners L.P. was founded in 2007 and is headquartered in Piraeus, Greece.

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