PAC BASIN SHIPP/ADR (OTCMKTS:PCFBY) and Global Ship Lease (NYSE:GSL) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares PAC BASIN SHIPP/ADR and Global Ship Lease’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PAC BASIN SHIPP/ADR N/A N/A N/A
Global Ship Lease -22.25% 8.60% 2.43%

Dividends

PAC BASIN SHIPP/ADR pays an annual dividend of $0.17 per share and has a dividend yield of 4.0%. Global Ship Lease does not pay a dividend. PAC BASIN SHIPP/ADR pays out 53.1% of its earnings in the form of a dividend.

Volatility and Risk

PAC BASIN SHIPP/ADR has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Global Ship Lease has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares PAC BASIN SHIPP/ADR and Global Ship Lease’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAC BASIN SHIPP/ADR $1.59 billion 0.60 $72.28 million $0.32 13.38
Global Ship Lease $157.10 million 0.43 -$57.36 million $1.76 3.89

PAC BASIN SHIPP/ADR has higher revenue and earnings than Global Ship Lease. Global Ship Lease 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PAC BASIN SHIPP/ADR and Global Ship Lease, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAC BASIN SHIPP/ADR 0 0 1 0 3.00
Global Ship Lease 0 0 1 0 3.00

Global Ship Lease has a consensus price target of $9.00, indicating a potential upside of 31.39%. Given Global Ship Lease’s higher possible upside, analysts clearly believe Global Ship Lease is more favorable than PAC BASIN SHIPP/ADR.

Insider and Institutional Ownership

0.4% of PAC BASIN SHIPP/ADR shares are held by institutional investors. Comparatively, 4.7% of Global Ship Lease shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Global Ship Lease beats PAC BASIN SHIPP/ADR on 7 of the 13 factors compared between the two stocks.

About PAC BASIN SHIPP/ADR

Pacific Basin Shipping Limited, an investment holding company, provides dry bulk shipping services worldwide. As of February 28, 2019, the company had a fleet of 217 ships, including 132 Handysize vessels, 83 Supramax vessels, and 2 Post Panamax vessels. It also offers ocean shipping services, shipping consulting and ship agency, crewing, secretarial, and agency and ship management services, as well as issues convertible bonds. Pacific Basin Shipping Limited was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.

About Global Ship Lease

Global Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. As of December 31, 2018, it owned 38 vessels with a total capacity of 200,615 twenty-foot equivalent units. The company is based in London, the United Kingdom.

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