Contrasting Ardmore Shipping Corporation (ASC) and Diana Shipping inc. (DSX)

Ardmore Shipping Corporation (NYSE: ASC) and Diana Shipping inc. (NYSE:DSX) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitabiliy and institutional ownership.

Profitability

This table compares Ardmore Shipping Corporation and Diana Shipping inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardmore Shipping Corporation -3.03% -0.60% -0.28%
Diana Shipping inc. -138.84% -15.25% -9.62%

Dividends

Ardmore Shipping Corporation pays an annual dividend of $0.11 per share and has a dividend yield of 1.3%. Diana Shipping inc. does not pay a dividend. Ardmore Shipping Corporation pays out -84.6% of its earnings in the form of a dividend. Diana Shipping inc. has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

76.3% of Ardmore Shipping Corporation shares are held by institutional investors. Comparatively, 33.8% of Diana Shipping inc. shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Ardmore Shipping Corporation has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Diana Shipping inc. has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ardmore Shipping Corporation and Diana Shipping inc.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ardmore Shipping Corporation $170.53 million 1.67 $47.88 million ($0.13) -65.38
Diana Shipping inc. $114.76 million 2.76 -$9.98 million ($2.05) -1.90

Ardmore Shipping Corporation has higher revenue and earnings than Diana Shipping inc.. Ardmore Shipping Corporation is trading at a lower price-to-earnings ratio than Diana Shipping inc., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ardmore Shipping Corporation and Diana Shipping inc., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardmore Shipping Corporation 0 2 5 0 2.71
Diana Shipping inc. 1 6 2 0 2.11

Ardmore Shipping Corporation presently has a consensus price target of $9.83, indicating a potential upside of 15.69%. Diana Shipping inc. has a consensus price target of $4.38, indicating a potential upside of 12.18%. Given Ardmore Shipping Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ardmore Shipping Corporation is more favorable than Diana Shipping inc..

Summary

Ardmore Shipping Corporation beats Diana Shipping inc. on 12 of the 15 factors compared between the two stocks.

Ardmore Shipping Corporation Company Profile

Ardmore Shipping Corporation provides seaborne transportation of petroleum products and chemicals to national oil companies, oil and chemical traders, and chemical companies, with its fleet of mid-size product and chemical tankers. The Company’s segment relates to the operations of its vessels. The Company’s fleet consists of over 20 double-hulled product and chemical tankers, all of which are in operation. The Company’s vessels include Ardmore Seavaliant, Ardmore Seaventure, Ardmore Seavantage, Ardmore Seavanguard, Ardmore Sealion, Ardmore Seafox, Ardmore Seahawk, Ardmore Endeavour, Ardmore Seafarer, Ardmore Seatrader, Ardmore Seamaster and Ardmore Sealeader. The Company has over 30 subsidiaries, the majority of which represent single ship-owning companies for its fleet. Its subsidiaries include Ardmore Shipping (Bermuda) Limited (ASBL), Ardmore Shipping Services (Ireland) Limited (ASSIL), Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC.

Diana Shipping inc. Company Profile

Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company’s operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company’s fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.

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