Diana Containerships (NASDAQ: DCIX) and Golden Ocean Group Limited (NASDAQ:GOGL) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Diana Containerships has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, Golden Ocean Group Limited has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.
This table compares Diana Containerships and Golden Ocean Group Limited’s 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%|
Institutional & Insider Ownership
10.5% of Golden Ocean Group Limited shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Diana Containerships and Golden Ocean Group Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group Limited||0||0||6||0||3.00|
Golden Ocean Group Limited has a consensus target price of $11.33, suggesting a potential upside of 38.72%. Given Golden Ocean Group Limited’s higher probable upside, analysts clearly believe Golden Ocean Group Limited is more favorable than Diana Containerships.
Valuation & Earnings
This table compares Diana Containerships and Golden Ocean Group Limited’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Diana Containerships||$22.70 million||0.01||-$10.89 million||($11,547.25)||0.00|
|Golden Ocean Group Limited||$339.88 million||3.11||$79.55 million||($0.46)||-17.76|
Golden Ocean Group Limited has higher revenue and earnings than Diana Containerships. Golden Ocean Group Limited is trading at a lower price-to-earnings ratio than Diana Containerships, indicating that it is currently the more affordable of the two stocks.
Golden Ocean Group Limited beats Diana Containerships on 11 of the 11 factors compared between the two stocks.
Diana Containerships Company Profile
Diana Containerships Inc. is a holding company. The Company, through its subsidiaries, is engaged in the ownership of containerships. As of December 31, 2016, the Company’s fleet consisted of six panamax and six post-panamax containerships with a combined carrying capacity of 61,517 twenty-foot equivalent unit (TEU). As of December 31, 2016, the Company’s fleet included SAGITTA, CENTAURUS, NEW JERSEY, PAMINA, DOMINGO, DOUKATO, PUELO, PUCON, MARCH, GREAT and HAMBURG. The Company’s customers include national, regional and international companies. The Company charters its vessels to customers primarily pursuant to short-term and long-term time charters. As of December 31, 2016, its subsidiaries included Likiep Shipping Company Inc., Orangina Inc., Rongerik Shipping Company Inc., Dud Shipping Company Inc., Mago Shipping Company Inc., Eluk Shipping Company Inc., Oruk Shipping Company Inc., Meck Shipping Company Inc., Langor Shipping Company Inc. and Unitized Ocean Transport Limited.
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.
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