Critical Review: Navios Maritime Partners (NMM) versus Hornbeck Offshore Services (HOS)

Navios Maritime Partners (NYSE: NMM) and Hornbeck Offshore Services (NYSE:HOS) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Volatility & Risk

Navios Maritime Partners has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Hornbeck Offshore Services has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares Navios Maritime Partners and Hornbeck Offshore Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navios Maritime Partners $192.44 million 1.70 $104.34 million ($0.45) -4.84
Hornbeck Offshore Services $175.31 million 0.78 $13.13 million ($2.27) -1.63

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

Profitability

This table compares Navios Maritime Partners and Hornbeck Offshore Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navios Maritime Partners -19.50% 2.60% 1.49%
Hornbeck Offshore Services -47.42% -6.72% -3.29%

Institutional & Insider Ownership

17.1% of Navios Maritime Partners shares are held by institutional investors. Comparatively, 86.7% of Hornbeck Offshore Services shares are held by institutional investors. 7.1% of Hornbeck Offshore Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Navios Maritime Partners and Hornbeck Offshore Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navios Maritime Partners 0 2 1 0 2.33
Hornbeck Offshore Services 0 4 0 0 2.00

Navios Maritime Partners presently has a consensus target price of $2.17, indicating a potential downside of 0.61%. Hornbeck Offshore Services has a consensus target price of $4.75, indicating a potential upside of 28.03%. Given Hornbeck Offshore Services’ higher possible upside, analysts clearly believe Hornbeck Offshore Services is more favorable than Navios Maritime Partners.

Summary

Navios Maritime Partners beats Hornbeck Offshore Services on 10 of the 13 factors compared between the two stocks.

Navios Maritime Partners Company Profile

Navios Maritime Partners L.P. is an international owner and operator of dry cargo and container vessels. The Company is engaged in the seaborne transportation services of a range of dry cargo commodities, including iron ore, coal, grain and fertilizer, and also containers, chartering its vessels under medium to long-term charters. It focuses on providing seaborne shipping services under long-term time charters. As of December 31, 2016, it controlled 12 Panamax vessels, nine Capesize vessels, three Ultra-Handymax vessels and seven container vessels. Panamax vessels are vessels capable of carrying a range of dry cargo commodities, including iron ore, coal, grain and fertilizer and being accommodated in various discharge ports. Capesize vessels are dedicated to the carriage of iron ore and coal. Ultra-Handymax vessels are similar to Panamax vessels although with less carrying capacity, and have self-loading and discharging gear on board to accommodate undeveloped ports.

Hornbeck Offshore Services Company Profile

Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.

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