Diana Shipping (NYSE:DSX – Get Free Report) and Genco Shipping & Trading (NYSE:GNK – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Diana Shipping and Genco Shipping & Trading’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diana Shipping | 27.88% | 7.55% | 3.32% |
| Genco Shipping & Trading | 9.15% | 6.46% | 4.83% |
Analyst Ratings
This is a summary of recent recommendations for Diana Shipping and Genco Shipping & Trading, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diana Shipping | 0 | 1 | 0 | 0 | 2.00 |
| Genco Shipping & Trading | 1 | 2 | 2 | 0 | 2.20 |
Genco Shipping & Trading has a consensus price target of $29.00, suggesting a potential upside of 17.30%. Given Genco Shipping & Trading’s stronger consensus rating and higher probable upside, analysts plainly believe Genco Shipping & Trading is more favorable than Diana Shipping.
Risk and Volatility
Diana Shipping has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Insider & Institutional Ownership
48.7% of Diana Shipping shares are owned by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are owned by institutional investors. 2.1% of Genco Shipping & Trading shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Diana Shipping and Genco Shipping & Trading”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diana Shipping | $213.54 million | 1.40 | $17.83 million | $0.48 | 4.99 |
| Genco Shipping & Trading | $342.05 million | 3.15 | -$4.37 million | $0.91 | 27.17 |
Diana Shipping has higher earnings, but lower revenue than Genco Shipping & Trading. Diana Shipping 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.
Dividends
Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 1.7%. Genco Shipping & Trading pays an annual dividend of $3.20 per share and has a dividend yield of 12.9%. Diana Shipping pays out 8.3% of its earnings in the form of a dividend. 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.
Summary
Genco Shipping & Trading beats Diana Shipping on 12 of the 16 factors compared between the two stocks.
About Diana Shipping
Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of March 1, 2024, it operated a fleet of 38 dry bulk vessels, including 4 Newcastlemax, 8 Capesize, 5 Post-Panamax, 6 Kamsarmax, 9 Ultramax, and 6 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.
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.
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