Navios Maritime Partners (NMM) & Ardmore Shipping Corporation (ASC) Critical Analysis
Navios Maritime Partners (NYSE: NMM) and Ardmore Shipping Corporation (NYSE:ASC) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
20.0% of Navios Maritime Partners shares are held by institutional investors. Comparatively, 76.4% of Ardmore Shipping Corporation shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Navios Maritime Partners has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Ardmore Shipping Corporation has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.
Earnings & Valuation
This table compares Navios Maritime Partners and Ardmore Shipping Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Navios Maritime Partners||$192.44 million||1.44||$104.34 million||($0.45)||-4.18|
|Ardmore Shipping Corporation||$180.66 million||1.36||$43.97 million||($0.37)||-19.73|
Navios Maritime Partners has higher revenue and earnings than Ardmore Shipping Corporation. Ardmore Shipping Corporation is trading at a lower price-to-earnings ratio than Navios Maritime Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Navios Maritime Partners and Ardmore Shipping Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navios Maritime Partners||-19.50%||2.60%||1.49%|
|Ardmore Shipping Corporation||-6.92%||-2.35%||-1.08%|
This is a breakdown of current ratings and target prices for Navios Maritime Partners and Ardmore Shipping Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navios Maritime Partners||0||2||1||0||2.33|
|Ardmore Shipping Corporation||0||2||4||0||2.67|
Navios Maritime Partners currently has a consensus target price of $2.17, suggesting a potential upside of 15.25%. Ardmore Shipping Corporation has a consensus target price of $9.88, suggesting a potential upside of 35.27%. Given Ardmore Shipping Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Ardmore Shipping Corporation is more favorable than Navios Maritime Partners.
About Navios Maritime Partners
Navios Maritime Partners L.P. is an international owner and operator of dry cargo and container vessels. The Company is engaged in the seaborne transportation services of a range of dry cargo commodities, including iron ore, coal, grain and fertilizer, and also containers, chartering its vessels under medium to long-term charters. It focuses on providing seaborne shipping services under long-term time charters. As of December 31, 2016, it controlled 12 Panamax vessels, nine Capesize vessels, three Ultra-Handymax vessels and seven container vessels. Panamax vessels are vessels capable of carrying a range of dry cargo commodities, including iron ore, coal, grain and fertilizer and being accommodated in various discharge ports. Capesize vessels are dedicated to the carriage of iron ore and coal. Ultra-Handymax vessels are similar to Panamax vessels although with less carrying capacity, and have self-loading and discharging gear on board to accommodate undeveloped ports.
About Ardmore Shipping Corporation
Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.
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