Navigator (NYSE: NVGS) and Eagle Bulk Shipping (NASDAQ:EGLE) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

Navigator has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Eagle Bulk Shipping has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.

Earnings & Valuation

This table compares Navigator and Eagle Bulk Shipping’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navigator $298.60 million 2.05 $5.31 million $0.16 69.06
Eagle Bulk Shipping $236.79 million 1.79 -$43.79 million ($0.42) -13.81

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Navigator and Eagle Bulk Shipping, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigator 0 1 3 0 2.75
Eagle Bulk Shipping 0 1 3 0 2.75

Navigator currently has a consensus price target of $15.00, indicating a potential upside of 35.75%. Eagle Bulk Shipping has a consensus price target of $6.63, indicating a potential upside of 14.22%. Given Navigator’s higher probable upside, research analysts clearly believe Navigator is more favorable than Eagle Bulk Shipping.

Profitability

This table compares Navigator and Eagle Bulk Shipping’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigator 1.09% 0.34% 0.18%
Eagle Bulk Shipping -12.09% -3.76% -2.18%

Insider & Institutional Ownership

71.9% of Navigator shares are owned by institutional investors. Comparatively, 43.0% of Eagle Bulk Shipping shares are owned by institutional investors. 3.7% of Eagle Bulk Shipping shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Navigator beats Eagle Bulk Shipping on 10 of the 12 factors compared between the two stocks.

About Navigator

Navigator Holdings Ltd. owns and operates a fleet of liquefied gas carriers worldwide. The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. As of December 31, 2017, it owned and operated a fleet of 38 vessels. The company was founded in 1997 and is based in London, the United Kingdom.

About Eagle Bulk Shipping

Eagle Bulk Shipping Inc. is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. The Company operates in the Handymax sector of the dry bulk industry, with particular emphasis on the Supramax class of vessels. The Company owns Supramax dry bulk vessel. Supramax dry bulk vessels range in size from 50,000 to 60,000 deadweight tons. These vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of Panamax dry bulk vessels, which range in size from 60,000 to 100,000 deadweight tons and must rely on port facilities to load and offload their cargoes. On July 26, 2011 the Company sold its the Heron, a Supramax class of vessel.

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