Golden Ocean Group (NYSE: MATX) and Matson (NYSE:MATX) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
This table compares Golden Ocean Group and Matson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golden Ocean Group||9.34%||3.71%||1.87%|
This table compares Golden Ocean Group and Matson’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Golden Ocean Group||$460.02 million||2.76||-$2.34 million||($0.02)||-440.50|
|Matson||$2.05 billion||0.76||$232.00 million||$1.78||20.60|
Matson has higher revenue and earnings than Golden Ocean Group. Golden Ocean Group is trading at a lower price-to-earnings ratio than Matson, indicating that it is currently the more affordable of the two stocks.
Golden Ocean Group pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Matson pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. Golden Ocean Group pays out -2,000.0% of its earnings in the form of a dividend. Matson pays out 47.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Matson has raised its dividend for 5 consecutive years. Golden Ocean Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current recommendations and price targets for Golden Ocean Group and Matson, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group||0||1||3||0||2.75|
Golden Ocean Group presently has a consensus target price of $11.17, suggesting a potential upside of 26.75%. Matson has a consensus target price of $38.00, suggesting a potential upside of 3.66%. Given Golden Ocean Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Golden Ocean Group is more favorable than Matson.
Volatility and Risk
Golden Ocean Group has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Matson has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Insider & Institutional Ownership
23.0% of Golden Ocean Group shares are owned by institutional investors. Comparatively, 85.5% of Matson shares are owned by institutional investors. 2.5% of Matson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Matson beats Golden Ocean Group on 9 of the 16 factors compared between the two stocks.
Golden Ocean Group Company Profile
Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide. It owns and operates a fleet of dry bulk vessels, including Newcastlemax, Capesize, Panamax, and Ultramax vessels in the spot and time charter markets. The company transports bulk commodities, such as ores, coal, grains, and fertilizers. As of March 20, 2018, it owned 68 dry bulk vessels, as well as had 10 chartered-in vessels. The company is based in Hamilton, Bermuda.
Matson Company Profile
Matson, Inc. provides ocean transportation and logistics services. The company's Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, it offers ship management services. The Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load forwarding services; warehousing and distribution services; and supply chain management 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.
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