Scorpio Bulkers (SALT) and Golden Ocean Group Limited (GOGL) Financial Comparison
Scorpio Bulkers (NYSE: SALT) and Golden Ocean Group Limited (NASDAQ:GOGL) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Risk & Volatility
Scorpio Bulkers has a beta of 3.65, meaning that its stock price is 265% more volatile than the S&P 500. Comparatively, Golden Ocean Group Limited has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500.
Earnings and Valuation
This table compares Scorpio Bulkers and Golden Ocean Group Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Scorpio Bulkers||$78.40 million||7.12||-$124.83 million||($1.11)||-6.67|
|Golden Ocean Group Limited||$257.81 million||4.28||-$127.71 million||($0.46)||-17.13|
Scorpio Bulkers has higher revenue, but lower earnings than Golden Ocean Group Limited. Golden Ocean Group Limited is trading at a lower price-to-earnings ratio than Scorpio Bulkers, indicating that it is currently the more affordable of the two stocks.
This table compares Scorpio Bulkers and Golden Ocean Group Limited’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%|
This is a breakdown of recent recommendations for Scorpio Bulkers and Golden Ocean Group Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group Limited||0||1||6||0||2.86|
Scorpio Bulkers currently has a consensus target price of $9.71, suggesting a potential upside of 31.19%. Golden Ocean Group Limited has a consensus target price of $11.33, suggesting a potential upside of 43.82%. Given Golden Ocean Group Limited’s stronger consensus rating and higher possible upside, analysts plainly believe Golden Ocean Group Limited is more favorable than Scorpio Bulkers.
Insider and Institutional Ownership
44.2% of Scorpio Bulkers shares are held by institutional investors. Comparatively, 9.8% of Golden Ocean Group Limited shares are held 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.
Golden Ocean Group Limited beats Scorpio Bulkers on 8 of the 12 factors compared between the two stocks.
About Scorpio Bulkers
Scorpio Bulkers Inc. is a shipping company. The Company owns and operates newbuilding drybulk carriers with fuel-efficient specifications and carrying capacities of greater than 30,000 deadweight tons (dwt). The Company operates through two segments: Kamsarmax and Ultramax. Its Kamsarmax segment includes vessels ranging from approximately 77,500 DWT to 98,700 DWT. Its Ultramax segment includes vessels ranging from approximately 60,200 DWT to 64,000 DWT. All of its owned vessels have carrying capacities of greater than 60,000 dwt. Its vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes, and are employed primarily in the spot market or in spot market-oriented pools of similarly sized vessels. As of December 31, 2016, its operating fleet of 48 vessels consisted of 47 drybulk vessels and one chartered-in drybulk vessel. It also has a contract for the construction of one newbuilding drybulk vessel.
About Golden Ocean Group Limited
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.
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