Global Ship Lease (NYSE: GSL) and Golden Ocean Group Limited (NASDAQ:GOGL) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Earnings and Valuation
This table compares Global Ship Lease and Golden Ocean Group Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Ship Lease||$162.48 million||0.34||$110.76 million||($1.36)||-0.85|
|Golden Ocean Group Limited||$339.88 million||3.50||$78.55 million||($0.46)||-19.52|
Global Ship Lease has higher revenue, but lower earnings than Golden Ocean Group Limited. Golden Ocean Group Limited is trading at a lower price-to-earnings ratio than Global Ship Lease, indicating that it is currently the more affordable of the two stocks.
This table compares Global Ship Lease and Golden Ocean Group Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Ship Lease||-38.68%||1.96%||0.86%|
|Golden Ocean Group Limited||-14.69%||-3.91%||-2.02%|
Insider and Institutional Ownership
5.3% of Global Ship Lease shares are owned by institutional investors. Comparatively, 10.5% of Golden Ocean Group Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Global Ship Lease and Golden Ocean Group Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Ship Lease||0||0||0||0||N/A|
|Golden Ocean Group Limited||0||0||6||0||3.00|
Golden Ocean Group Limited has a consensus target price of $11.33, suggesting a potential upside of 26.21%. Given Golden Ocean Group Limited’s higher probable upside, analysts clearly believe Golden Ocean Group Limited is more favorable than Global Ship Lease.
Volatility & Risk
Global Ship Lease has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Golden Ocean Group Limited has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500.
Golden Ocean Group Limited beats Global Ship Lease on 8 of the 11 factors compared between the two stocks.
About Global Ship Lease
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.
About Golden Ocean Group Limited
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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