Diana Shipping inc. (NYSE: DSX) and Capital Product Partners L.P. (NASDAQ:CPLP) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
37.3% of Diana Shipping inc. shares are held by institutional investors. Comparatively, 17.6% of Capital Product Partners L.P. shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Diana Shipping inc. and Capital Product Partners L.P., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diana Shipping inc.||0||4||3||0||2.43|
|Capital Product Partners L.P.||0||0||4||0||3.00|
Diana Shipping inc. currently has a consensus target price of $5.19, suggesting a potential upside of 28.09%. Capital Product Partners L.P. has a consensus target price of $5.00, suggesting a potential upside of 40.45%. Given Capital Product Partners L.P.’s stronger consensus rating and higher possible upside, analysts clearly believe Capital Product Partners L.P. is more favorable than Diana Shipping inc..
This table compares Diana Shipping inc. and Capital Product Partners L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diana Shipping inc.||-122.29%||-14.80%||-9.26%|
|Capital Product Partners L.P.||18.20%||4.95%||2.80%|
Valuation & Earnings
This table compares Diana Shipping inc. and Capital Product Partners L.P.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Diana Shipping inc.||$124.18 million||3.15||-$403,499.00||($1.90)||-2.13|
|Capital Product Partners L.P.||N/A||N/A||N/A||$0.30||11.87|
Capital Product Partners L.P. has higher revenue, but lower earnings than Diana Shipping inc.. Diana Shipping inc. is trading at a lower price-to-earnings ratio than Capital Product Partners L.P., indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Diana Shipping inc. has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Capital Product Partners L.P. has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 9.0%. Diana Shipping inc. does not pay a dividend. Capital Product Partners L.P. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Capital Product Partners L.P. beats Diana Shipping inc. on 9 of the 12 factors compared between the two stocks.
Diana Shipping inc. Company Profile
Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company’s operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company’s fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.
Capital Product Partners L.P. Company Profile
Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.
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