Seaspan Corporation (NYSE: SSW) and Diana Containerships (NASDAQ:DCIX) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitabiliy, earnings and risk.

Valuation & Earnings

This table compares Seaspan Corporation and Diana Containerships’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seaspan Corporation $844.00 million 0.95 $501.00 million ($1.67) -4.07
Diana Containerships $22.70 million 0.01 -$8.54 million ($549.59) 0.00

Seaspan Corporation has higher revenue and earnings than Diana Containerships. Seaspan Corporation is trading at a lower price-to-earnings ratio than Diana Containerships, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Seaspan Corporation and Diana Containerships’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seaspan Corporation -13.54% 7.51% 2.36%
Diana Containerships -467.42% -27.46% -10.57%

Volatility and Risk

Seaspan Corporation has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Diana Containerships has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500.

Insider & Institutional Ownership

13.4% of Seaspan Corporation shares are owned by institutional investors. Comparatively, 30.0% of Diana Containerships shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Seaspan Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 7.4%. Diana Containerships does not pay a dividend. Seaspan Corporation pays out -29.9% of its earnings in the form of a dividend. Seaspan Corporation has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Seaspan Corporation and Diana Containerships, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seaspan Corporation 3 6 0 0 1.67
Diana Containerships 0 0 1 0 3.00

Seaspan Corporation presently has a consensus price target of $6.79, indicating a potential downside of 0.21%. Diana Containerships has a consensus price target of $336.00, indicating a potential upside of 86,497.94%. Given Diana Containerships’ stronger consensus rating and higher possible upside, analysts clearly believe Diana Containerships is more favorable than Seaspan Corporation.

Summary

Seaspan Corporation beats Diana Containerships on 10 of the 15 factors compared between the two stocks.

Seaspan Corporation Company Profile

Seaspan Corporation is an independent charter owner and manager of containerships. The Company charters pursuant to long-term, fixed-rate time charters with various container liner companies. As of February 20, 2017, it had operated a fleet of 88 containerships and had entered into contracts for the purchase of an additional eight new building containerships. Its operating vessels include YM Wish, YM Wellhead, YM Witness, COSCO Glory, COSCO Development, COSCO Harmony, COSCO Excellence, COSCO Hope, COSCO Fortune, Seaspan Yangtze, CSCL Zeebrugge, CSCL Long Beach, CSCL Oceania, COSCO Vietnam, MOL Emissary, Seaspan Chiwan, Seaspan Ningbo, Seaspan Felixstowe, CSCL Brisbane, Seaspan Santos, Seaspan Loncomilla, Seaspan Lingue, CSCL Montevideo, CSCL Callao, Guayaquil Bridge and Calicanto Bridge. The Company is engaged in the operation and management of vessel, including maintaining the vessel, periodic dry-docking, cleaning and painting and performing work required by regulations.

Diana Containerships Company Profile

Diana Containerships Inc. is a holding company. The Company, through its subsidiaries, is engaged in the ownership of containerships. As of December 31, 2016, the Company’s fleet consisted of six panamax and six post-panamax containerships with a combined carrying capacity of 61,517 twenty-foot equivalent unit (TEU). As of December 31, 2016, the Company’s fleet included SAGITTA, CENTAURUS, NEW JERSEY, PAMINA, DOMINGO, DOUKATO, PUELO, PUCON, MARCH, GREAT and HAMBURG. The Company’s customers include national, regional and international companies. The Company charters its vessels to customers primarily pursuant to short-term and long-term time charters. As of December 31, 2016, its subsidiaries included Likiep Shipping Company Inc., Orangina Inc., Rongerik Shipping Company Inc., Dud Shipping Company Inc., Mago Shipping Company Inc., Eluk Shipping Company Inc., Oruk Shipping Company Inc., Meck Shipping Company Inc., Langor Shipping Company Inc. and Unitized Ocean Transport Limited.

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