Ardmore Shipping (OTCMKTS: PCFBY) and Pac BASIN SHIPP/ADR (OTCMKTS:PCFBY) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

This table compares Ardmore Shipping and Pac BASIN SHIPP/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardmore Shipping $195.93 million 1.15 -$12.49 million ($0.37) -18.38
Pac BASIN SHIPP/ADR $1.49 billion 0.63 $3.61 million $0.02 209.50

Pac BASIN SHIPP/ADR has higher revenue and earnings than Ardmore Shipping. Ardmore Shipping is trading at a lower price-to-earnings ratio than Pac BASIN SHIPP/ADR, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Ardmore Shipping has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Pac BASIN SHIPP/ADR has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Insider and Institutional Ownership

89.5% of Ardmore Shipping shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ardmore Shipping and Pac BASIN SHIPP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardmore Shipping -11.15% -5.70% -2.55%
Pac BASIN SHIPP/ADR N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Ardmore Shipping and Pac BASIN SHIPP/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardmore Shipping 0 1 4 0 2.80
Pac BASIN SHIPP/ADR 0 0 0 0 N/A

Ardmore Shipping presently has a consensus price target of $10.40, indicating a potential upside of 52.94%. Given Ardmore Shipping’s higher possible upside, analysts plainly believe Ardmore Shipping is more favorable than Pac BASIN SHIPP/ADR.

Dividends

Pac BASIN SHIPP/ADR pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Ardmore Shipping does not pay a dividend. Pac BASIN SHIPP/ADR pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ardmore Shipping has raised its dividend for 4 consecutive years.

Summary

Pac BASIN SHIPP/ADR beats Ardmore Shipping on 8 of the 15 factors compared between the two stocks.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation, together with its subsidiaries, engages in the seaborne transportation of petroleum products and chemicals worldwide. The company operates a fleet of 28 double-hulled product and chemical tankers. It serves oil majors, oil companies, oil and chemical traders, and chemical companies. The company was founded in 2010 and is based in Pembroke, Bermuda.

Pac BASIN SHIPP/ADR Company Profile

Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. The company has a fleet of 222 ships, including 139 Handysize vessels, 81 Supramax vessels, and 2 Post Panamax vessels. It also offers ship and ocean shipping services, shipping consulting and ship agency, crewing, secretarial, and agency and ship management services. Pacific Basin Shipping Limited was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.

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