Genco Shipping & Trading (NYSE:GNK) versus Costamare (NYSE:CMRE) Financial Survey

Genco Shipping & Trading (NYSE:GNK) and Costamare (NYSE:CMRE) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Genco Shipping & Trading and Costamare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genco Shipping & Trading	9.15%	6.46%	4.83%
Costamare	39.40%	14.51%	8.21%

Valuation and Earnings

This table compares Genco Shipping & Trading and Costamare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genco Shipping & Trading	$342.05 million	3.15	-$4.37 million	$0.91	27.14
Costamare	$877.90 million	1.85	$364.58 million	$2.59	5.19

Costamare has higher revenue and earnings than Genco Shipping & Trading. Costamare is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Genco Shipping & Trading and Costamare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genco Shipping & Trading	1	2	2	0	2.20
Costamare	0	3	0	1	2.50

Genco Shipping & Trading currently has a consensus target price of $29.00, indicating a potential upside of 17.44%. Costamare has a consensus target price of $12.00, indicating a potential downside of 10.81%. Given Genco Shipping & Trading’s higher probable upside, analysts plainly believe Genco Shipping & Trading is more favorable than Costamare.

Volatility & Risk

Genco Shipping & Trading has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Costamare has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Dividends

Genco Shipping & Trading pays an annual dividend of $3.20 per share and has a dividend yield of 13.0%. Costamare pays an annual dividend of $0.50 per share and has a dividend yield of 3.7%. Genco Shipping & Trading pays out 351.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Costamare pays out 19.3% of its earnings in the form of a dividend.

Institutional and Insider Ownership

58.6% of Genco Shipping & Trading shares are held by institutional investors. Comparatively, 58.1% of Costamare shares are held by institutional investors. 2.1% of Genco Shipping & Trading shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Costamare beats Genco Shipping & Trading on 10 of the 17 factors compared between the two stocks.

About Genco Shipping & Trading

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.

About Costamare

Costamare Inc. owns and operates containerships and dry bulk vessels that are chartered to liner companies providing transportation of cargoes worldwide. As of March 19, 2024, it had a fleet of fleet of 68 containerships and 37 dry bulk vessels. The company was founded in 1974 and is based in Monaco.