Costamare (NYSE: CMRE) and Capital Product Partners L.P. (NASDAQ:CPLP) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Valuation & Earnings
This table compares Costamare and Capital Product Partners L.P.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Costamare||$438.93 million||1.52||$280.04 million||$0.38||16.53|
|Capital Product Partners L.P.||$245.00 million||N/A||$160.90 million||$0.30||11.77|
Costamare has higher revenue and earnings than Capital Product Partners L.P.. Capital Product Partners L.P. is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Costamare and Capital Product Partners L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Product Partners L.P.||0||0||4||0||3.00|
Costamare presently has a consensus price target of $7.30, indicating a potential upside of 16.24%. Capital Product Partners L.P. has a consensus price target of $5.00, indicating a potential upside of 41.64%. Given Capital Product Partners L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe Capital Product Partners L.P. is more favorable than Costamare.
Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.4%. Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 9.1%. Costamare pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Product Partners L.P. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Costamare and Capital Product Partners L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Product Partners L.P.||18.20%||4.95%||2.80%|
Insider and Institutional Ownership
27.0% of Costamare shares are owned by institutional investors. Comparatively, 17.6% of Capital Product Partners L.P. shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Costamare has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500. Comparatively, Capital Product Partners L.P. has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.
Costamare beats Capital Product Partners L.P. on 8 of the 14 factors compared between the two stocks.
Costamare Company Profile
Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.
Capital Product Partners L.P. Company Profile
Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.
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