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

Risk & Volatility

Seaspan Corporation has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Euroseas has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Valuation and Earnings

This table compares Seaspan Corporation and Euroseas’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seaspan Corporation $844.00 million 0.97 $501.00 million ($1.67) -4.14
Euroseas $32.84 million 0.60 $3.25 million ($3.15) -0.56

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

Institutional and Insider Ownership

15.3% of Seaspan Corporation shares are held by institutional investors. Comparatively, 1.7% of Euroseas shares are held by institutional investors. 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Seaspan Corporation and Euroseas, as reported by MarketBeat.com.

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

Seaspan Corporation presently has a consensus price target of $6.79, suggesting a potential downside of 1.94%. Euroseas has a consensus price target of $3.00, suggesting a potential upside of 71.42%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts clearly believe Euroseas is more favorable than Seaspan Corporation.

Dividends

Seaspan Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 7.2%. Euroseas does not pay a dividend. Seaspan Corporation pays out -29.9% of its earnings in the form of a dividend. Euroseas has raised its dividend for 5 consecutive years.

Profitability

This table compares Seaspan Corporation and Euroseas’ 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%
Euroseas -77.39% -17.55% -6.51%

Summary

Seaspan Corporation beats Euroseas 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.

Euroseas Company Profile

Euroseas Ltd. is engaged in the shipping business. The Company is an owner and operator of drybulk and container carrier vessels and is a provider of seaborne transportation for drybulk and containerized cargoes. Eurobulk Ltd. manages the Company’s operations. The Company also owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal and grains, and minor bulks, such as bauxite, phosphate and fertilizers. The Company has a fleet of 12 vessels, including Kamsarmax drybulk carrier, Panamax drybulk carriers and Handymax drybulk carrier, Intermediate containerships, Handysize containerships, and Feeder containerships. The Company’s five drybulk carriers have a total cargo capacity of 351,272 deadweight tons (dwt), and its seven containerships have a cargo capacity of 11,828 twenty-foot equivalent units (teu).

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