Contrasting Eagle Bulk Shipping (EGLE) and Global Ship Lease (GSL)

Eagle Bulk Shipping (NASDAQ: EGLE) and Global Ship Lease (NYSE:GSL) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

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This table compares Eagle Bulk Shipping and Global Ship Lease’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Bulk Shipping -18.50% -6.04% -3.60%
Global Ship Lease -47.19% 8.35% 3.59%

Institutional & Insider Ownership

28.9% of Eagle Bulk Shipping shares are held by institutional investors. Comparatively, 6.3% of Global Ship Lease shares are held by institutional investors. 2.9% of Eagle Bulk Shipping shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Eagle Bulk Shipping and Global Ship Lease’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Bulk Shipping $236.79 million 1.52 -$43.79 million ($0.42) -12.17
Global Ship Lease $158.99 million 0.40 -$74.26 million N/A N/A

Eagle Bulk Shipping has higher revenue and earnings than Global Ship Lease.

Volatility & Risk

Eagle Bulk Shipping has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Global Ship Lease has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Eagle Bulk Shipping and Global Ship Lease, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bulk Shipping 0 1 2 0 2.67
Global Ship Lease 0 0 0 0 N/A

Eagle Bulk Shipping currently has a consensus price target of $6.00, suggesting a potential upside of 17.42%. Given Eagle Bulk Shipping’s higher probable upside, research analysts clearly believe Eagle Bulk Shipping is more favorable than Global Ship Lease.

Summary

Eagle Bulk Shipping beats Global Ship Lease on 9 of the 12 factors compared between the two stocks.

Eagle Bulk Shipping Company Profile

Eagle Bulk Shipping Inc. is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. The Company operates in the Handymax sector of the dry bulk industry, with particular emphasis on the Supramax class of vessels. The Company owns Supramax dry bulk vessel. Supramax dry bulk vessels range in size from 50,000 to 60,000 deadweight tons. These vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of Panamax dry bulk vessels, which range in size from 60,000 to 100,000 deadweight tons and must rely on port facilities to load and offload their cargoes. On July 26, 2011 the Company sold its the Heron, a Supramax class of vessel.

Global Ship Lease Company Profile

Global Ship Lease, Inc. owns and charters containerships of various sizes under long-term, fixed-rate charters to container shipping companies. As of March 1, 2018, the company owned 18 vessels with a total capacity of 82,312 twenty-foot equivalent units. Global Ship Lease, Inc. is based in London, the United Kingdom.

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