Costamare (NYSE: CMRE) and Textainer Group (NYSE:TGH) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.
Insider & Institutional Ownership
23.6% of Costamare shares are held by institutional investors. Comparatively, 27.0% of Textainer Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Costamare and Textainer Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Costamare||$412.43 million||1.64||$72.87 million||$0.54||11.48|
|Textainer Group||$490.85 million||2.05||$19.36 million||$0.34||51.76|
Costamare has higher earnings, but lower revenue than Textainer Group. Costamare is trading at a lower price-to-earnings ratio than Textainer Group, indicating that it is currently the more affordable of the two stocks.
Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.5%. Textainer Group does not pay a dividend. Costamare pays out 74.1% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for Costamare and Textainer Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Costamare presently has a consensus price target of $7.00, indicating a potential upside of 12.90%. Textainer Group has a consensus price target of $23.50, indicating a potential upside of 33.52%. Given Textainer Group’s stronger consensus rating and higher probable upside, analysts plainly believe Textainer Group is more favorable than Costamare.
This table compares Costamare and Textainer Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Costamare has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500. Comparatively, Textainer Group has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.
Textainer Group beats Costamare on 9 of the 15 factors compared between the two stocks.
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.
About Textainer Group
Textainer Group Holdings Limited is a holding company. The Company is involved in the purchase, ownership, management, leasing and disposal of a fleet of intermodal containers. The Company operates in three segments: Container Ownership, which owns containers; Container Management, which manages containers on behalf of affiliated and unaffiliated container investors, and provides acquisition, management and disposal services, and total managed containers, and Container Resale, which sells containers from its fleet when they reach the end of their useful lives in marine service, and also purchases and leases or resells containers from shipping line customers, container traders and other sellers of containers. The Company is a lessor of intermodal containers based on fleet size. The Company is also a seller of used containers. The Company’s subsidiaries include Textainer Equipment Management Limited (TEML) and Textainer Limited (TL).
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