Critical Comparison: Global Ship Lease (GSL) versus Its Peers

Global Ship Lease (NYSE: GSL) is one of 25 publicly-traded companies in the “Deep Sea Freight” industry, but how does it contrast to its rivals? We will compare Global Ship Lease to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Profitability

This table compares Global Ship Lease and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Ship Lease -18.63% 3.08% 1.36%
Global Ship Lease Competitors -63.28% -14.87% -5.12%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Global Ship Lease and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Ship Lease 0 0 0 0 N/A
Global Ship Lease Competitors 151 488 600 6 2.37

As a group, “Deep Sea Freight” companies have a potential upside of 22.63%. Given Global Ship Lease’s rivals higher probable upside, analysts clearly believe Global Ship Lease has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

5.4% of Global Ship Lease shares are held by institutional investors. Comparatively, 51.9% 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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Global Ship Lease has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Global Ship Lease’s rivals have a beta of 1.90, meaning that their average stock price is 90% more volatile than the S&P 500.

Valuation & Earnings

This table compares Global Ship Lease and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Global Ship Lease $166.52 million -$65.09 million -1.74
Global Ship Lease Competitors $220.64 million -$76.22 million 18.43

Global Ship Lease’s rivals have higher revenue, but lower earnings than Global Ship Lease. Global Ship Lease 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.

Summary

Global Ship Lease rivals beat Global Ship Lease on 6 of the 10 factors compared.

Global Ship Lease Company Profile

Global Ship Lease, Inc. is a holding company and containership charter owner. The Company’s activity consists of the ownership and chartering out of containerships. It owns a fleet of containerships with a range of sizes. Its fleet comprises over 20 containerships, with a combined capacity of over 82,310 twenty-foot equivalent unit (TEU) and a weighted average age of over 11.0 years, and a non-weighted average age of over 11.3 years. Its vessels include CMA CGM Matisse, CMA CGM Utrillo, Delmas Keta, Julie Delmas, Kumasi, Marie Delmas, CMA CGM La Tour, CMA CGM Manet, CMA CGM Alcazar, CMA CGM Chateau d’If, CMA CGM Thalassa, CMA CGM Jamaica, CMA CGM Sambhar and CMA CGM America. Approximately 10 vessels are owned by companies incorporated in Cyprus; over four by companies incorporated in Hong Kong, and approximately one is held by another Marshall Islands company. Its subsidiary, Global Ship Lease Services Limited, provides administrative services.

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