Financial Analysis: Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) versus United Maritime (NASDAQ:USEA)

United Maritime (NASDAQ:USEA) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for United Maritime and Nippon Yusen Kabushiki Kaisha, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Maritime	1	0	0	0	1.00
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Volatility & Risk

United Maritime has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

1.6% of United Maritime shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares United Maritime and Nippon Yusen Kabushiki Kaisha”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Maritime	$45.44 million	0.34	-$3.38 million	($0.50)	-3.34
Nippon Yusen Kabushiki Kaisha	$17.00 billion	0.82	$1.51 billion	$0.96	6.70

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than United Maritime. United Maritime is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United Maritime and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Maritime	-10.18%	-6.57%	-2.41%
Nippon Yusen Kabushiki Kaisha	12.71%	10.10%	6.78%

Dividends

United Maritime pays an annual dividend of $0.12 per share and has a dividend yield of 7.2%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 3.0%. United Maritime pays out -24.0% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 19.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Maritime is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Nippon Yusen Kabushiki Kaisha beats United Maritime on 10 of the 13 factors compared between the two stocks.

About United Maritime

United Maritime Corporation, a shipping company, offers seaborne transportation services worldwide. It operates a fleet of eight dry bulk vessels comprising three Panamax, three Capesize, and two Kamsarmax vessels with an aggregate cargo-carrying capacity of approximately 922,054 dwt. The company was incorporated in 2022 and is based in Glyfada, Greece.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.