Reviewing Navios Maritime Partners (NMM) & DryShips (DRYS)
Navios Maritime Partners (NYSE: NMM) and DryShips (NASDAQ:DRYS) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
DryShips pays an annual dividend of $0.10 per share and has a dividend yield of 2.9%. Navios Maritime Partners does not pay a dividend. DryShips pays out 0.0% of its earnings in the form of a dividend.
This table compares Navios Maritime Partners and DryShips’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navios Maritime Partners||-7.13%||2.77%||1.67%|
Institutional and Insider Ownership
15.8% of Navios Maritime Partners shares are held by institutional investors. Comparatively, 2.2% of DryShips shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Navios Maritime Partners and DryShips’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Navios Maritime Partners||$211.65 million||1.54||-$15.09 million||$0.01||195.00|
|DryShips||$51.93 million||6.81||-$198.68 million||($53,251.45)||0.00|
Navios Maritime Partners has higher revenue and earnings than DryShips. DryShips 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 is a summary of current ratings and target prices for Navios Maritime Partners and DryShips, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navios Maritime Partners||0||3||1||0||2.25|
Navios Maritime Partners currently has a consensus target price of $2.50, indicating a potential upside of 28.21%. Given Navios Maritime Partners’ higher probable upside, equities research analysts clearly believe Navios Maritime Partners is more favorable than DryShips.
Risk and Volatility
Navios Maritime Partners has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, DryShips has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.
Navios Maritime Partners beats DryShips on 10 of the 14 factors compared between the two stocks.
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.
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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