Grindrod Shipping (NASDAQ:GRIN) and Star Bulk Carriers (NASDAQ:SBLK) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Volatility & Risk

Grindrod Shipping has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Star Bulk Carriers has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

7.9% of Grindrod Shipping shares are held by institutional investors. Comparatively, 58.1% of Star Bulk Carriers shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Grindrod Shipping and Star Bulk Carriers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grindrod Shipping $331.05 million 0.17 N/A N/A N/A
Star Bulk Carriers $821.36 million 0.76 -$16.20 million $0.26 24.92

Grindrod Shipping has higher earnings, but lower revenue than Star Bulk Carriers.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Grindrod Shipping and Star Bulk Carriers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grindrod Shipping 0 0 2 0 3.00
Star Bulk Carriers 0 1 2 0 2.67

Grindrod Shipping presently has a consensus target price of $11.55, indicating a potential upside of 294.20%. Star Bulk Carriers has a consensus target price of $9.80, indicating a potential upside of 51.23%. Given Grindrod Shipping’s stronger consensus rating and higher possible upside, research analysts plainly believe Grindrod Shipping is more favorable than Star Bulk Carriers.

Profitability

This table compares Grindrod Shipping and Star Bulk Carriers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grindrod Shipping N/A N/A N/A
Star Bulk Carriers -0.99% 0.60% 0.29%

Summary

Star Bulk Carriers beats Grindrod Shipping on 6 of the 9 factors compared between the two stocks.

About Grindrod Shipping

Grindrod Shipping Holdings Ltd., an international shipping company, owns, charters-in, and operates a fleet of dry bulk carriers and tankers. The company operates in two businesses, Drybulk Carriers and Tankers. It operates a fleet of 24 owned dry bulk carriers and 6 long-term chartered-in dry bulk carriers that transport a range of bulk and breakbulk commodities, including ores, coal, grains, forestry products, steel products, and fertilizers. The company also operates a fleet of 8 owned tankers and 2 long-term chartered-in tankers, which carry petroleum products, petrol, diesel, jet fuel, and naptha, as well as heavy fuel oil; and low hazard chemical products comprising liquid bulk vegetable oils. Its customers include trading houses, mining companies, industrial manufacturing companies, and oil companies, as well as traders of grains, steel, and forestry products. Grindrod Shipping Holdings Ltd. was incorporated in 2017 and is based in Singapore.

About Star Bulk Carriers

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of major bulks, including iron ores, coal, and grains, as well as minor bulks, such as bauxite, fertilizers, and steel products. As of April 10, 2019, the company had a fleet of 109 vessels with an aggregate capacity of approximately 12.45 million deadweight ton, including 17 Newcastlemax, 19 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax, and 10 Supramax vessels. It also provides vessel management services to dry bulk vessels of various sizes. The company was incorporated in 2006 and is based in Maroussi, Greece.

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