Navios Maritime (NM) & Euroseas (ESEA) Critical Review

Navios Maritime (NYSE:NM) and Euroseas (NASDAQ:ESEA) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Risk & Volatility

Navios Maritime has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Navios Maritime and Euroseas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime -24.52% -11.19% -2.51%
Euroseas 3.76% -8.84% -1.87%

Earnings & Valuation

This table compares Navios Maritime and Euroseas’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navios Maritime $463.05 million 0.06 -$165.91 million ($10.10) -0.25
Euroseas $42.92 million 0.18 -$6.09 million ($0.38) -1.85

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

Insider & Institutional Ownership

93.4% of Navios Maritime shares are held by institutional investors. Comparatively, 2.2% of Euroseas shares are held by institutional investors. 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 current recommendations for Navios Maritime and Euroseas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime 1 0 1 0 2.00
Euroseas 0 0 2 0 3.00

Euroseas has a consensus price target of $2.50, indicating a potential upside of 256.02%. Given Euroseas’ stronger consensus rating and higher possible upside, analysts clearly believe Euroseas is more favorable than Navios Maritime.

Summary

Euroseas beats Navios Maritime on 9 of the 13 factors compared between the two stocks.

About Navios Maritime

Navios Maritime Holdings Inc. operates as a seaborne shipping and logistics company in North America, Europe, Asia, South America, and internationally. The company focuses on the transportation and transshipment of dry bulk commodities, including iron ores, coal, and grains. It operates through two segments, Dry Bulk Vessel Operations and Logistics Business. The Dry Bulk Vessel Operations segment engages in the transportation and handling of bulk cargoes through the ownership, operation, and trading of vessels, freight, and forward freight agreements. This segment charters its vessels to trading houses, producers, and government-owned entities. The Logistics Business segment operates ports and transfer station terminals, as well as upriver transport facilities in the Hidrovia region; and handles vessels, barges, and push boats. This segment provides its integrated transportation, storage, and related services through its port facilities, fleet of dry and liquid cargo barges, and product tankers to mineral and grain commodity providers, as well as to users of refined petroleum products. The company's fleet consists of 71 vessels totaling 7.2 million deadweight tons. Navios Maritime Holdings Inc. is based in Monte Carlo, Monaco.

About Euroseas

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of April 25, 2018, it had a fleet of 11 containerships; and 6 drybulk carriers, including 3 Panamax drybulk carriers, 1 Handymax drybulk carrier, 1 Kamsarmax drybulk carrier, and 1 Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

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