Contrasting Baltic Trading (BALT) and Hornbeck Offshore Services (HOS)
Baltic Trading (NYSE: BALT) and Hornbeck Offshore Services (NYSE:HOS) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
This table compares Baltic Trading and Hornbeck Offshore Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hornbeck Offshore Services||-48.34%||-7.00%||-3.43%|
Institutional and Insider Ownership
77.5% of Hornbeck Offshore Services shares are held by institutional investors. 7.1% of Hornbeck Offshore Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Baltic Trading has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Hornbeck Offshore Services has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Earnings & Valuation
This table compares Baltic Trading and Hornbeck Offshore Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hornbeck Offshore Services||$224.30 million||0.62||-$63.84 million||($2.33)||-1.62|
Baltic Trading has higher earnings, but lower revenue than Hornbeck Offshore Services. Hornbeck Offshore Services is trading at a lower price-to-earnings ratio than Baltic Trading, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Baltic Trading and Hornbeck Offshore Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hornbeck Offshore Services||0||3||0||0||2.00|
Hornbeck Offshore Services has a consensus price target of $3.50, indicating a potential downside of 7.41%. Given Hornbeck Offshore Services’ higher possible upside, analysts plainly believe Hornbeck Offshore Services is more favorable than Baltic Trading.
Hornbeck Offshore Services beats Baltic Trading on 7 of the 10 factors compared between the two stocks.
About Baltic Trading
Baltic Trading Limited is a shipping business focused on the drybulk industry spot market. The Company’s fleet consists of four Capesize vessels, two Ultramax vessels, four Supramax vessels and five Handysize vessels with an aggregate carrying capacity of approximately 1,221,000 deadweight tons. Its fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. It operates a fleet of drybulk ships that transport iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes around the world. It operates its vessels on spot market-related time charters, short-term time charters or in vessel pools trading in the spot market. Genco Shipping & Trading Limited (Genco) serves as the Company’s manager. Genco provides it with commercial and strategic management of its fleet.
About Hornbeck Offshore Services
Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.
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