Critical Review: Golden Ocean Group Limited (GOGL) vs. DryShips (DRYS)
Golden Ocean Group Limited (NASDAQ: GOGL) and DryShips (NASDAQ:DRYS) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Earnings & Valuation
This table compares Golden Ocean Group Limited and DryShips’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golden Ocean Group Limited||$339.88 million||3.83||$78.55 million||($0.46)||-21.37|
|DryShips||$46.72 million||0.02||-$36.42 million||($273,305.91)||0.00|
Golden Ocean Group Limited has higher revenue and earnings than DryShips. Golden Ocean Group Limited is trading at a lower price-to-earnings ratio than DryShips, indicating that it is currently the more affordable of the two stocks.
DryShips pays an annual dividend of $0.28 per share and has a dividend yield of 9.2%. Golden Ocean Group Limited does not pay a dividend. DryShips pays out 0.0% of its earnings in the form of a dividend.
This table compares Golden Ocean Group Limited and DryShips’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golden Ocean Group Limited||-14.69%||-3.91%||-2.02%|
Risk & Volatility
Golden Ocean Group Limited has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, DryShips has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.
This is a summary of current recommendations for Golden Ocean Group Limited and DryShips, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golden Ocean Group Limited||0||0||7||0||3.00|
Golden Ocean Group Limited presently has a consensus target price of $9.75, suggesting a potential downside of 0.81%. Given Golden Ocean Group Limited’s higher possible upside, analysts plainly believe Golden Ocean Group Limited is more favorable than DryShips.
Insider and Institutional Ownership
11.9% of Golden Ocean Group Limited shares are held by institutional investors. Comparatively, 6.4% of DryShips shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Golden Ocean Group Limited beats DryShips on 11 of the 13 factors compared between the two stocks.
About Golden Ocean Group Limited
Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.
DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.
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