Financial Analysis: StealthGas (GASS) vs. Euroseas (ESEA)
StealthGas (NASDAQ: GASS) and Euroseas (NASDAQ:ESEA) are both small-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
This table compares StealthGas and Euroseas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
67.9% of StealthGas shares are owned by institutional investors. Comparatively, 1.7% of Euroseas shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for StealthGas and Euroseas, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
StealthGas currently has a consensus target price of $5.50, indicating a potential upside of 67.17%. Euroseas has a consensus target price of $3.00, indicating a potential upside of 74.42%. Given Euroseas’ stronger consensus rating and higher probable upside, analysts plainly believe Euroseas is more favorable than StealthGas.
Volatility and Risk
StealthGas has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Earnings & Valuation
This table compares StealthGas and Euroseas’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|StealthGas||$149.25 million||0.88||$57.06 million||($0.16)||-20.56|
|Euroseas||$32.84 million||0.59||$3.25 million||($3.15)||-0.55|
StealthGas has higher revenue and earnings than Euroseas. StealthGas is trading at a lower price-to-earnings ratio than Euroseas, indicating that it is currently the more affordable of the two stocks.
StealthGas beats Euroseas on 9 of the 11 factors compared between the two stocks.
StealthGas Inc. is a provider of international seaborne transportation services to liquefied petroleum gas (LPG) producers and users, as well as crude oil and product carriers to oil producers, refineries and commodities traders. The Company owns a fleet of LPG carriers. Its LPG carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene and vinyl chloride monomer, which are all byproducts of the production of crude oil and natural gas. The medium range product carriers in its fleet are capable of carrying refined petroleum products, such as gasoline, diesel, fuel oil and jet fuel, as well as edible oils and chemicals, while its Aframax tanker is used for carrying crude oil. Its fleet consists of approximately 50 LPG carriers, including two chartered-in LPG carriers, two 2008-built product carriers, a 2009-built product carrier and a 2010-built Aframax crude oil tanker.
Euroseas Ltd. is engaged in the shipping business. The Company is an owner and operator of drybulk and container carrier vessels and is a provider of seaborne transportation for drybulk and containerized cargoes. Eurobulk Ltd. manages the Company’s operations. The Company also owns and operates dry bulk carriers that transport major bulks, such as iron ore, coal and grains, and minor bulks, such as bauxite, phosphate and fertilizers. The Company has a fleet of 12 vessels, including Kamsarmax drybulk carrier, Panamax drybulk carriers and Handymax drybulk carrier, Intermediate containerships, Handysize containerships, and Feeder containerships. The Company’s five drybulk carriers have a total cargo capacity of 351,272 deadweight tons (dwt), and its seven containerships have a cargo capacity of 11,828 twenty-foot equivalent units (teu).
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