Okeanis Eco Tankers (NYSE:ECO) & Danaos (NYSE:DAC) Critical Survey

Danaos (NYSE:DAC) and Okeanis Eco Tankers (NYSE:ECO) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Danaos and Okeanis Eco Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaos	45.16%	13.49%	10.71%
Okeanis Eco Tankers	21.92%	18.05%	7.05%

Volatility & Risk

Danaos has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Okeanis Eco Tankers has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.

Insider & Institutional Ownership

19.0% of Danaos shares are owned by institutional investors. 41.0% of Danaos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Danaos and Okeanis Eco Tankers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$1.01 billion	1.94	$505.07 million	$25.06	4.13
Okeanis Eco Tankers	$393.23 million	N/A	$108.86 million	$2.39	16.90

Danaos has higher revenue and earnings than Okeanis Eco Tankers. Danaos is trading at a lower price-to-earnings ratio than Okeanis Eco Tankers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Danaos and Okeanis Eco Tankers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	0	2	0	3.00
Okeanis Eco Tankers	0	3	3	0	2.50

Danaos currently has a consensus price target of $105.00, suggesting a potential upside of 1.52%. Okeanis Eco Tankers has a consensus price target of $40.02, suggesting a potential downside of 0.90%. Given Danaos’ stronger consensus rating and higher probable upside, equities analysts plainly believe Danaos is more favorable than Okeanis Eco Tankers.

Dividends

Danaos pays an annual dividend of $3.60 per share and has a dividend yield of 3.5%. Okeanis Eco Tankers pays an annual dividend of $3.00 per share and has a dividend yield of 7.4%. Danaos pays out 14.4% of its earnings in the form of a dividend. Okeanis Eco Tankers pays out 125.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Danaos has raised its dividend for 3 consecutive years.

Summary

Danaos beats Okeanis Eco Tankers on 12 of the 16 factors compared between the two stocks.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

About Okeanis Eco Tankers

Okeanis Eco Tankers Corp., a shipping company, owns and operates tanker vessels worldwide. It operates a fleet of 14 tanker vessels comprising six modern Suezmax tankers and eight modern VLCC tankers focusing on the transportation of crude oil. The company was incorporated in 2018 and is based in Neo Faliro, Greece.