Comparing Algoma Central (OTCMKTS:AGMJF) & Safe Bulkers (NYSE:SB)

Safe Bulkers (NYSE:SB) and Algoma Central (OTCMKTS:AGMJF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Safe Bulkers and Algoma Central, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe Bulkers	0	2	1	0	2.33
Algoma Central	0	0	0	0	0.00

Safe Bulkers currently has a consensus price target of $6.00, indicating a potential downside of 23.33%. Given Safe Bulkers’ stronger consensus rating and higher possible upside, equities analysts plainly believe Safe Bulkers is more favorable than Algoma Central.

Institutional and Insider Ownership

21.7% of Safe Bulkers shares are held by institutional investors. Comparatively, 69.3% of Algoma Central shares are held by institutional investors. 40.3% of Safe Bulkers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Safe Bulkers and Algoma Central”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe Bulkers	$275.74 million	2.89	$38.56 million	$0.78	10.03
Algoma Central	N/A	N/A	N/A	$1.02	15.94

Safe Bulkers has higher revenue and earnings than Algoma Central. Safe Bulkers is trading at a lower price-to-earnings ratio than Algoma Central, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Safe Bulkers and Algoma Central’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe Bulkers	28.29%	9.63%	5.77%
Algoma Central	N/A	N/A	N/A

Dividends

Safe Bulkers pays an annual dividend of $0.24 per share and has a dividend yield of 3.1%. Algoma Central pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Safe Bulkers pays out 30.8% of its earnings in the form of a dividend. Algoma Central pays out 27.5% 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.

Summary

Safe Bulkers beats Algoma Central on 9 of the 13 factors compared between the two stocks.

About Safe Bulkers

Safe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. The company has a fleet of 47 drybulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its fleet consists of 10 Panamax class vessels, 11 Kamsarmax class vessels, 18 post-Panamax class vessels, and 8 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.

About Algoma Central

Algoma Central Corporation owns and operates a fleet of dry and liquid bulk carriers activities in Canada. The company operates through Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Global Short Sea Shipping, and Investment Properties segments. The company operates dry-bulk carriers for industrial sectors, including producers in iron and steel, aggregate, cement and building materials, and salt producers as well as, agricultural product distributors. It also provides transportation services for liquid petroleum products throughout the Great Lakes, St. Lawrence Seaway, and Atlantic Canada regions. In addition, the company operates ocean self-unloading vessels; three global fleets, including fleet of specialized cement carriers, short sea mini bulkers, and hand-size bulkers; and provides specialized equipment or services on niche marine transportation markets. The company was formerly known as Algoma Central Railway and changed its name to Algoma Central Corporation in 1990. Algoma Central Corporation was incorporated in 1899 and is headquartered in Saint Catharines, Canada.