Reviewing Safe Bulkers (SB) and Navios Maritime Partners (NMM)

Navios Maritime Partners (NYSE: NMM) and Safe Bulkers (NYSE:SB) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Navios Maritime Partners and Safe Bulkers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Partners 0 2 1 0 2.33
Safe Bulkers 1 3 3 0 2.29

Navios Maritime Partners currently has a consensus target price of $2.17, indicating a potential downside of 11.20%. Safe Bulkers has a consensus target price of $3.10, indicating a potential downside of 13.89%. Given Navios Maritime Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Navios Maritime Partners is more favorable than Safe Bulkers.

Valuation & Earnings

This table compares Navios Maritime Partners and Safe Bulkers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navios Maritime Partners $190.52 million 1.89 -$52.54 million $0.01 244.00
Safe Bulkers $109.77 million 3.33 -$55.96 million ($0.19) -18.95

Navios Maritime Partners has higher revenue and earnings than Safe Bulkers. Safe Bulkers 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.

Profitability

This table compares Navios Maritime Partners and Safe Bulkers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Partners 15.30% 4.69% 2.76%
Safe Bulkers -2.01% -2.10% -1.01%

Risk and Volatility

Navios Maritime Partners has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Safe Bulkers has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.

Institutional and Insider Ownership

15.3% of Navios Maritime Partners shares are held by institutional investors. Comparatively, 20.1% of Safe Bulkers shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Navios Maritime Partners beats Safe Bulkers on 9 of the 13 factors compared between the two stocks.

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.

Safe Bulkers Company Profile

Safe Bulkers, Inc. is a holding company. The Company’s principal business is the acquisition, ownership and operation of drybulk vessels. The Company’s vessels operate across the world, carrying drybulk cargo for the consumers of marine drybulk transportation services. The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along shipping routes across the world. As of February 17, 2017 the Company’s fleet included 38 vessels, of which 14 are Panamax class vessels, nine are Kamsarmax class vessels, 12 are Post-Panamax class vessels and three are Capesize class vessels, with an aggregate carrying capacity of 3,421,800 deadweight tonnage (dwt). The Company’s fleet of Post-Panamax vessels includes Marina, Xenia, Sophia, Eleni, Martine, Andreas K, Panayiota K, Venus Heritage, Venus History, Venus Horizon and Troodos Sun. Its fleet of Capesize vessels includes Kanaris, Pelopidas and Lake Despina.

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