Contrasting Eagle Bulk Shipping (NASDAQ:EGLE) and Navios Maritime Partners (NASDAQ:NMM)

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Eagle Bulk Shipping (NASDAQ:EGLE) and Navios Maritime Partners (NYSE:NMM) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Dividends

Navios Maritime Partners pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. Eagle Bulk Shipping does not pay a dividend. Navios Maritime Partners pays out 36.4% of its earnings in the form of a dividend.

Institutional and Insider Ownership

85.3% of Eagle Bulk Shipping shares are owned by institutional investors. Comparatively, 12.0% of Navios Maritime Partners shares are owned by institutional investors. 4.1% of Eagle Bulk Shipping shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Eagle Bulk Shipping and Navios Maritime Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bulk Shipping 0 1 4 0 2.80
Navios Maritime Partners 0 0 1 0 3.00

Eagle Bulk Shipping currently has a consensus target price of $6.50, suggesting a potential upside of 45.74%. Given Eagle Bulk Shipping’s higher possible upside, equities research analysts clearly believe Eagle Bulk Shipping is more favorable than Navios Maritime Partners.

Profitability

This table compares Eagle Bulk Shipping and Navios Maritime Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Bulk Shipping 1.03% 0.27% 0.15%
Navios Maritime Partners -2.36% 2.33% 1.38%

Valuation & Earnings

This table compares Eagle Bulk Shipping and Navios Maritime Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Bulk Shipping $310.09 million 1.05 $12.57 million $0.18 24.78
Navios Maritime Partners $231.36 million 0.86 -$13.08 million $3.30 5.43

Eagle Bulk Shipping has higher revenue and earnings than Navios Maritime Partners. Navios Maritime Partners is trading at a lower price-to-earnings ratio than Eagle Bulk Shipping, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Eagle Bulk Shipping has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Navios Maritime Partners has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Summary

Eagle Bulk Shipping beats Navios Maritime Partners on 10 of the 16 factors compared between the two stocks.

Eagle Bulk Shipping Company Profile

Eagle Bulk Shipping, Inc. is a holding company, which engages in the ocean transportation of a broad range of dry bulk cargoes worldwide through the ownership, charter, and operation of dry bulk vessels. It operates Supramax and Handymax vessels that transport minor and major bulk cargoes, including iron ore, coal, grain, cement, and fertilizer. The company was founded by Sophocles N. Zoullas on March 23, 2005 and is headquartered in Stamford, CT.

Navios Maritime Partners Company Profile

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of dry cargo commodities, including iron ore, coal, grain, and fertilizers, as well as charters its vessels under medium to long-term charters. As of June 12, 2018, it owned a fleet of 38 vessels, including 13 Capesize vessels, 17 Panamaxes, 3 Ultra-Handymaxes, and 5 Container vessels. Navios GP L.L.C. serves as the general partner of Navios Maritime Partners L.P. The company was founded in 2007 and is based in Monaco.

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