Golden Ocean Group Limited (NASDAQ: GOGL) and Navios Maritime Partners (NYSE:NMM) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
10.5% of Golden Ocean Group Limited shares are owned by institutional investors. Comparatively, 17.1% of Navios Maritime Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Golden Ocean Group Limited and Navios Maritime Partners’ gross 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||3.50||$78.55 million||($0.46)||-19.52|
|Navios Maritime Partners||$192.44 million||1.72||$104.34 million||($0.45)||-4.89|
Navios Maritime Partners 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 Navios Maritime Partners, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Golden Ocean Group Limited and Navios Maritime Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group Limited||0||0||6||0||3.00|
|Navios Maritime Partners||0||2||1||0||2.33|
Golden Ocean Group Limited currently has a consensus target price of $11.33, suggesting a potential upside of 26.21%. Navios Maritime Partners has a consensus target price of $2.17, suggesting a potential downside of 1.52%. Given Golden Ocean Group Limited’s stronger consensus rating and higher probable upside, equities analysts clearly believe Golden Ocean Group Limited is more favorable than Navios Maritime Partners.
This table compares Golden Ocean Group Limited and Navios Maritime Partners’ 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%|
|Navios Maritime Partners||-19.50%||2.60%||1.49%|
Risk and Volatility
Golden Ocean Group Limited has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Navios Maritime Partners has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.
Golden Ocean Group Limited beats Navios Maritime Partners on 7 of the 12 factors compared between the two stocks.
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.
Navios Maritime Partners Company Profile
Navios Maritime Partners L.P. is an international owner and operator of dry cargo and container vessels. The Company is engaged in the seaborne transportation services of a range of dry cargo commodities, including iron ore, coal, grain and fertilizer, and also containers, chartering its vessels under medium to long-term charters. It focuses on providing seaborne shipping services under long-term time charters. As of December 31, 2016, it controlled 12 Panamax vessels, nine Capesize vessels, three Ultra-Handymax vessels and seven container vessels. Panamax vessels are vessels capable of carrying a range of dry cargo commodities, including iron ore, coal, grain and fertilizer and being accommodated in various discharge ports. Capesize vessels are dedicated to the carriage of iron ore and coal. Ultra-Handymax vessels are similar to Panamax vessels although with less carrying capacity, and have self-loading and discharging gear on board to accommodate undeveloped ports.
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