Analyzing Capital Product Partners L.P. (CPLP) and Euroseas (ESEA)
Capital Product Partners L.P. (NASDAQ: CPLP) and Euroseas (NASDAQ:ESEA) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Institutional and Insider Ownership
17.6% of Capital Product Partners L.P. shares are held by institutional investors. Comparatively, 1.7% of Euroseas shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Capital Product Partners L.P. and Euroseas’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Capital Product Partners L.P.||N/A||N/A||N/A||$0.30||11.87|
|Euroseas||$32.84 million||0.58||$3.25 million||($3.15)||-0.54|
Euroseas has higher revenue and earnings than Capital Product Partners L.P.. Euroseas is trading at a lower price-to-earnings ratio than Capital Product Partners L.P., indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Capital Product Partners L.P. and Euroseas, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Product Partners L.P.||0||0||4||0||3.00|
Capital Product Partners L.P. currently has a consensus target price of $5.00, indicating a potential upside of 40.45%. Euroseas has a consensus target price of $3.00, indicating a potential upside of 76.47%. Given Euroseas’ higher probable upside, analysts plainly believe Euroseas is more favorable than Capital Product Partners L.P..
Volatility & Risk
Capital Product Partners L.P. has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 9.0%. Euroseas does not pay a dividend. Capital Product Partners L.P. pays out 106.7% 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 table compares Capital Product Partners L.P. and Euroseas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Product Partners L.P.||18.20%||4.95%||2.80%|
Capital Product Partners L.P. beats Euroseas on 7 of the 10 factors compared between the two stocks.
About Capital Product Partners L.P.
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.
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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