Performance Shipping (NASDAQ:PSHG – Get Free Report) and Danaos (NYSE:DAC – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Performance Shipping and Danaos, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Performance Shipping | 1 | 0 | 0 | 0 | 1.00 |
| Danaos | 0 | 0 | 0 | 3 | 4.00 |
Profitability
This table compares Performance Shipping and Danaos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Performance Shipping | 29.70% | 10.21% | 5.48% |
| Danaos | 51.26% | 13.20% | 10.08% |
Volatility & Risk
Performance Shipping has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Danaos has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Insider and Institutional Ownership
19.9% of Performance Shipping shares are owned by institutional investors. Comparatively, 19.0% of Danaos shares are owned by institutional investors. 0.4% of Performance Shipping shares are owned by company insiders. Comparatively, 41.0% of Danaos shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Performance Shipping and Danaos”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Performance Shipping | $84.17 million | 0.24 | $49.97 million | $0.92 | 1.77 |
| Danaos | $1.04 billion | 2.75 | $494.61 million | $29.55 | 5.32 |
Danaos has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Danaos, indicating that it is currently the more affordable of the two stocks.
Summary
Danaos beats Performance Shipping on 12 of the 13 factors compared between the two stocks.
About Performance Shipping
Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.
About Danaos
Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.
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