Safe Bulkers (NYSE: SB) and International Seaways (NYSE:INSW) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Safe Bulkers and International Seaways’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Safe Bulkers $127.17 million 2.42 $59.75 million ($0.57) -5.32
International Seaways $327.29 million 1.68 $85.71 million ($3.50) -5.38

International Seaways has higher revenue and earnings than Safe Bulkers. International Seaways is trading at a lower price-to-earnings ratio than Safe Bulkers, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Safe Bulkers and International Seaways’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safe Bulkers -26.74% -3.34% -1.61%
International Seaways -31.22% 0.91% 0.64%

Analyst Ratings

This is a breakdown of recent recommendations for Safe Bulkers and International Seaways, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safe Bulkers 0 4 3 0 2.43
International Seaways 0 0 1 0 3.00

Safe Bulkers currently has a consensus price target of $3.19, indicating a potential upside of 5.20%. International Seaways has a consensus price target of $30.00, indicating a potential upside of 59.32%. Given International Seaways’ stronger consensus rating and higher possible upside, analysts clearly believe International Seaways is more favorable than Safe Bulkers.

Insider & Institutional Ownership

19.0% of Safe Bulkers shares are held by institutional investors. Comparatively, 86.3% of International Seaways shares are held by institutional investors. 0.5% of International Seaways shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

International Seaways beats Safe Bulkers on 8 of the 12 factors compared between the two stocks.

Safe Bulkers Company Profile

Safe Bulkers, Inc. is a holding company. The Company’s principal business is the acquisition, ownership and operation of drybulk vessels. The Company’s vessels operate across the world, carrying drybulk cargo for the consumers of marine drybulk transportation services. The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along shipping routes across the world. As of February 17, 2017 the Company’s fleet included 38 vessels, of which 14 are Panamax class vessels, nine are Kamsarmax class vessels, 12 are Post-Panamax class vessels and three are Capesize class vessels, with an aggregate carrying capacity of 3,421,800 deadweight tonnage (dwt). The Company’s fleet of Post-Panamax vessels includes Marina, Xenia, Sophia, Eleni, Martine, Andreas K, Panayiota K, Venus Heritage, Venus History, Venus Horizon and Troodos Sun. Its fleet of Capesize vessels includes Kanaris, Pelopidas and Lake Despina.

International Seaways Company Profile

International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company’s oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company’s segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.

Receive News & Stock Ratings for Safe Bulkers Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Safe Bulkers Inc and related stocks with our FREE daily email newsletter.