Navios Maritime Midstream Partners (NYSE: NAP) and CAI International (NYSE:CAI) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Navios Maritime Midstream Partners and CAI International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navios Maritime Midstream Partners $84.60 million 2.20 $56.46 million $0.86 10.34
CAI International $319.94 million 1.63 $63.93 million $0.68 40.04

CAI International has higher revenue and earnings than Navios Maritime Midstream Partners. Navios Maritime Midstream Partners is trading at a lower price-to-earnings ratio than CAI International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Navios Maritime Midstream Partners has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, CAI International has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Navios Maritime Midstream Partners and CAI International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Midstream Partners 1 2 0 0 1.67
CAI International 0 2 1 0 2.33

Navios Maritime Midstream Partners currently has a consensus target price of $10.33, suggesting a potential upside of 16.24%. CAI International has a consensus target price of $26.00, suggesting a potential downside of 4.52%. Given Navios Maritime Midstream Partners’ higher probable upside, research analysts clearly believe Navios Maritime Midstream Partners is more favorable than CAI International.

Profitability

This table compares Navios Maritime Midstream Partners and CAI International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Midstream Partners 18.41% 5.73% 3.29%
CAI International 4.14% 4.13% 0.93%

Institutional and Insider Ownership

27.9% of Navios Maritime Midstream Partners shares are held by institutional investors. Comparatively, 58.4% of CAI International shares are held by institutional investors. 24.5% of CAI International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Navios Maritime Midstream Partners pays an annual dividend of $1.69 per share and has a dividend yield of 19.0%. CAI International does not pay a dividend. Navios Maritime Midstream Partners pays out 196.5% 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

CAI International beats Navios Maritime Midstream Partners on 9 of the 16 factors compared between the two stocks.

About Navios Maritime Midstream Partners

Navios Maritime Midstream Partners L.P. (Navios Midstream) is a holding company. The Company’s principal activity is to own, operate and acquire crude oil tankers under long-term employment contracts, as well as refined petroleum product tankers, chemical tankers, and liquefied petroleum gas (LPG) tankers under long-term employment contracts. The Company focuses to charter its vessels under long-term employment contracts to international oil companies, refiners and large vessel operators. As of December 31, 2016, the Company had a fleet consists of six very large crude carriers (VLCCs), which had an average remaining employment term of approximately 4.2 years. Its VLCC vessels include Shinyo Ocean, Shinyo Kannika, Shinyo Saowalak, Shinyo Kieran, C. Dream and Nave Celeste. The Company also provides seaborne shipping services under long-term time charters.

About CAI International

CAI International, Inc. is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers, and also manages equipment for third-party investors. The Company operates through three segments: container leasing, rail leasing and logistics. In operating the Company’s fleet, it leases, re-leases and disposes equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company leases its container equipment to lessees under long-term leases, short-term leases and finance leases. The Company’s long-term leases have terms of one year or more and specify the number of containers to be leased, the pick-up and drop-off locations.

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