Contrasting Martin Midstream Partners (NASDAQ:MMLP) & Genco Shipping & Trading (NYSE:GNK)

Genco Shipping & Trading (NYSE:GNKGet Free Report) and Martin Midstream Partners (NASDAQ:MMLPGet Free Report) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Valuation and Earnings

This table compares Genco Shipping & Trading and Martin Midstream Partners”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genco Shipping & Trading $342.05 million 3.10 -$4.37 million $0.38 64.08
Martin Midstream Partners $716.11 million 0.12 -$14.74 million ($0.51) -4.43

Genco Shipping & Trading has higher earnings, but lower revenue than Martin Midstream Partners. Martin Midstream Partners is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.

Dividends

Genco Shipping & Trading pays an annual dividend of $1.40 per share and has a dividend yield of 5.7%. Martin Midstream Partners pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Genco Shipping & Trading pays out 368.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martin Midstream Partners pays out -3.9% of its earnings in the form of a dividend.

Profitability

This table compares Genco Shipping & Trading and Martin Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genco Shipping & Trading 4.38% 2.49% 1.95%
Martin Midstream Partners -2.88% N/A -3.93%

Volatility and Risk

Genco Shipping & Trading has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Martin Midstream Partners has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Institutional & Insider Ownership

58.6% of Genco Shipping & Trading shares are owned by institutional investors. Comparatively, 34.9% of Martin Midstream Partners shares are owned by institutional investors. 2.1% of Genco Shipping & Trading shares are owned by company insiders. Comparatively, 17.0% of Martin Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Genco Shipping & Trading and Martin Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genco Shipping & Trading 0 3 2 0 2.40
Martin Midstream Partners 1 1 0 0 1.50

Genco Shipping & Trading currently has a consensus price target of $23.67, indicating a potential downside of 2.81%. Martin Midstream Partners has a consensus price target of $3.00, indicating a potential upside of 32.74%. Given Martin Midstream Partners’ higher possible upside, analysts plainly believe Martin Midstream Partners is more favorable than Genco Shipping & Trading.

Summary

Genco Shipping & Trading beats Martin Midstream Partners on 12 of the 16 factors compared between the two stocks.

About Genco Shipping & Trading

(Get Free Report)

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels. The company was founded on September 27, 2004 and is headquartered in New York, NY.

About Martin Midstream Partners

(Get Free Report)

Martin Midstream Partners L.P., together with its subsidiaries, provides terminalling, processing, storage, and packaging services for petroleum products and by-products primarily in the United States. The company operates in four segments: Terminalling and Storage, Transportation, Sulfur Services, and Specialty Products. The company's Terminalling and Storage segment owns or operates various marine shore-based terminal facilities and specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Transportation segment operates various trucks and tank trailers; and inland marine tank barges, inland push boats, and articulated offshore tug and barge unit to transport petroleum products and by-products, petrochemicals, and chemicals. The company's Sulfur Services segment processes molten sulfur into prilled or pelletized sulfur, which is used in the production of fertilizers and industrial chemicals. Its Specialty Products segment stores, distributes, and transports natural gas liquids for wholesale deliveries to refineries, industrial natural gas liquid users, and propane retailers. Martin Midstream GP LLC serves as a general partner of the company. Martin Midstream Partners L.P. was incorporated in 2002 and is based in Kilgore, Texas.

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