Critical Survey: Star Bulk Carriers Corp. (SBLK) and The Competition
Star Bulk Carriers Corp. (NASDAQ: SBLK) is one of 26 public companies in the “Deep Sea Freight” industry, but how does it weigh in compared to its rivals? We will compare Star Bulk Carriers Corp. to similar companies based on the strength of its valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Institutional & Insider Ownership
73.8% of Star Bulk Carriers Corp. shares are held by institutional investors. Comparatively, 56.3% of shares of all “Deep Sea Freight” companies are held by institutional investors. 4.1% of shares of all “Deep Sea Freight” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Star Bulk Carriers Corp. and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Star Bulk Carriers Corp.||-36.90%||-5.54%||-2.83%|
|Star Bulk Carriers Corp. Competitors||-91.74%||-15.81%||-5.52%|
Valuation and Earnings
This table compares Star Bulk Carriers Corp. and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Star Bulk Carriers Corp.||$266.62 million||$59.28 million||-5.62|
|Star Bulk Carriers Corp. Competitors||$224.95 million||$96.25 million||-2.64|
Star Bulk Carriers Corp. has higher revenue, but lower earnings than its rivals. Star Bulk Carriers Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
Star Bulk Carriers Corp. has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500. Comparatively, Star Bulk Carriers Corp.’s rivals have a beta of 2.04, meaning that their average stock price is 104% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Star Bulk Carriers Corp. and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Star Bulk Carriers Corp.||0||1||6||0||2.86|
|Star Bulk Carriers Corp. Competitors||142||471||589||5||2.38|
Star Bulk Carriers Corp. presently has a consensus price target of $13.20, suggesting a potential upside of 26.20%. As a group, “Deep Sea Freight” companies have a potential upside of 27.74%. Given Star Bulk Carriers Corp.’s rivals higher probable upside, analysts plainly believe Star Bulk Carriers Corp. has less favorable growth aspects than its rivals.
Star Bulk Carriers Corp. beats its rivals on 8 of the 12 factors compared.
Star Bulk Carriers Corp. Company Profile
Star Bulk Carriers Corp. is an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. As of December 31, 2016, the Company’s fleet included 73 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 and 209,537 deadweight tonnage (dwt). The Company’s vessels transport a range of bulk commodities, including ores, coal, grains and fertilizers, along shipping routes across the world. The Company’s fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company’s Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia, and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia.
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