Financial Comparison: Baltic Trading (BALT) & Golden Ocean Group (GOGL)

Baltic Trading (NYSE: BALT) and Golden Ocean Group (NASDAQ:GOGL) are both small-cap deep sea freight companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Baltic Trading and Golden Ocean Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baltic Trading 0 0 0 0 N/A
Golden Ocean Group 0 1 6 0 2.86

Golden Ocean Group has a consensus price target of $11.33, indicating a potential upside of 28.79%. Given Golden Ocean Group’s higher probable upside, analysts clearly believe Golden Ocean Group is more favorable than Baltic Trading.

Institutional and Insider Ownership

25.0% of Golden Ocean Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Baltic Trading and Golden Ocean Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baltic Trading N/A N/A N/A ($1.14) -1.37
Golden Ocean Group $257.81 million 4.78 -$127.71 million ($0.19) -46.32

Baltic Trading has higher earnings, but lower revenue than Golden Ocean Group. Golden Ocean Group is trading at a lower price-to-earnings ratio than Baltic Trading, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Baltic Trading has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Golden Ocean Group has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.

Profitability

This table compares Baltic Trading and Golden Ocean Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baltic Trading -613.08% -49.39% -30.66%
Golden Ocean Group -5.79% -1.74% -0.89%

Summary

Golden Ocean Group beats Baltic Trading on 9 of the 10 factors compared between the two stocks.

Baltic Trading Company Profile

Baltic Trading Limited is a shipping business focused on the drybulk industry spot market. The Company’s fleet consists of four Capesize vessels, two Ultramax vessels, four Supramax vessels and five Handysize vessels with an aggregate carrying capacity of approximately 1,221,000 deadweight tons. Its fleet contains six groups of sister ships, which are vessels of virtually identical sizes and specifications. It operates a fleet of drybulk ships that transport iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes around the world. It operates its vessels on spot market-related time charters, short-term time charters or in vessel pools trading in the spot market. Genco Shipping & Trading Limited (Genco) serves as the Company’s manager. Genco provides it with commercial and strategic management of its fleet.

Golden Ocean Group Company Profile

Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.

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