Diana Shipping (NYSE:DSX – Get Rating) and OceanPal (NASDAQ:OP – Get Rating) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Valuation and Earnings
This table compares Diana Shipping and OceanPal’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Diana Shipping | $214.20 million | 2.74 | $57.39 million | $0.63 | 10.19 |
OceanPal | N/A | N/A | N/A | N/A | N/A |
Profitability
This table compares Diana Shipping and OceanPal’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Diana Shipping | 26.79% | 10.32% | 4.88% |
OceanPal | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current recommendations for Diana Shipping and OceanPal, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Diana Shipping | 0 | 2 | 1 | 0 | 2.33 |
OceanPal | 0 | 0 | 0 | 0 | N/A |
Diana Shipping currently has a consensus target price of $6.83, suggesting a potential upside of 6.44%. Given Diana Shipping’s higher possible upside, research analysts clearly believe Diana Shipping is more favorable than OceanPal.
Dividends
Diana Shipping pays an annual dividend of $0.80 per share and has a dividend yield of 12.5%. OceanPal pays an annual dividend of $0.20 per share and has a dividend yield of 33.1%. Diana Shipping pays out 127.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diana Shipping has increased its dividend for 1 consecutive years.
Institutional and Insider Ownership
36.9% of Diana Shipping shares are held by institutional investors. Comparatively, 14.3% of OceanPal shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Diana Shipping beats OceanPal on 8 of the 10 factors compared between the two stocks.
Diana Shipping Company Profile (Get Rating)
Diana Shipping Inc. provides shipping transportation services. The company transports a range of dry bulk cargoes, including commodities, such as iron ore, coal, grain, and other materials in shipping routes worldwide. As of April 13, 2022, it operated a fleet of 35 dry bulk vessels, including 4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 6 Kamsarmax, and 8 Panamax. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was incorporated in 1999 and is based in Athens, Greece.
OceanPal Company Profile (Get Rating)
OceanPal Inc. focuses on the provision of ocean-going transportation services. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers. As of November 29, 2021, its fleet consisted of 3 dry bulk vessels, which include 2 Panamax and 1 Capesize vessels. The company is based in Athens, Greece.
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