Financial Analysis: Golden Ocean Group Limited (GOGL) vs. Ardmore Shipping Corporation (ASC)
Golden Ocean Group Limited (NASDAQ: GOGL) and Ardmore Shipping Corporation (NYSE:ASC) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
This is a breakdown of current ratings and price targets for Golden Ocean Group Limited and Ardmore Shipping Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group Limited||0||0||6||0||3.00|
|Ardmore Shipping Corporation||0||1||4||0||2.80|
Golden Ocean Group Limited presently has a consensus price target of $11.33, suggesting a potential upside of 30.12%. Ardmore Shipping Corporation has a consensus price target of $10.50, suggesting a potential upside of 36.36%. Given Ardmore Shipping Corporation’s higher possible upside, analysts clearly believe Ardmore Shipping Corporation is more favorable than Golden Ocean Group Limited.
Valuation and Earnings
This table compares Golden Ocean Group Limited and Ardmore Shipping Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golden Ocean Group Limited||$339.88 million||3.32||$79.55 million||($0.46)||-18.93|
|Ardmore Shipping Corporation||$180.66 million||1.43||$43.97 million||($0.37)||-20.81|
Golden Ocean Group Limited has higher revenue and earnings than Ardmore Shipping Corporation. Ardmore Shipping Corporation is trading at a lower price-to-earnings ratio than Golden Ocean Group Limited, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Golden Ocean Group Limited has a beta of 2.36, indicating that its stock price is 136% more volatile than the S&P 500. Comparatively, Ardmore Shipping Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Insider and Institutional Ownership
10.5% of Golden Ocean Group Limited shares are owned by institutional investors. Comparatively, 76.5% of Ardmore Shipping Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Golden Ocean Group Limited and Ardmore Shipping Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golden Ocean Group Limited||-14.69%||-3.91%||-2.02%|
|Ardmore Shipping Corporation||-6.92%||-2.35%||-1.08%|
Golden Ocean Group Limited Company Profile
Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.
Ardmore Shipping Corporation Company Profile
Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.
Receive News & Ratings for Golden Ocean Group Limited Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golden Ocean Group Limited and related companies with MarketBeat.com's FREE daily email newsletter.