Danaos (NYSE:DAC – Get Free Report) and COSCO SHIPPING (OTCMKTS:CICOY – Get Free Report) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.
Dividends
Danaos pays an annual dividend of $3.60 per share and has a dividend yield of 2.8%. COSCO SHIPPING pays an annual dividend of $0.45 per share and has a dividend yield of 4.7%. Danaos pays out 12.7% of its earnings in the form of a dividend. Danaos has raised its dividend for 3 consecutive years.
Risk & Volatility
Danaos has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, COSCO SHIPPING has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Danaos | 49.85% | 13.18% | 10.23% |
| COSCO SHIPPING | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Danaos and COSCO SHIPPING, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Danaos | 0 | 1 | 2 | 1 | 3.00 |
| COSCO SHIPPING | 2 | 2 | 0 | 0 | 1.50 |
Danaos currently has a consensus target price of $105.00, indicating a potential downside of 19.01%. Given Danaos’ stronger consensus rating and higher possible upside, analysts clearly believe Danaos is more favorable than COSCO SHIPPING.
Earnings and Valuation
This table compares Danaos and COSCO SHIPPING”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Danaos | $1.04 billion | 2.26 | $494.61 million | $28.35 | 4.57 |
| COSCO SHIPPING | $30.54 billion | 0.97 | $4.29 billion | N/A | N/A |
COSCO SHIPPING has higher revenue and earnings than Danaos.
Institutional & Insider Ownership
19.0% of Danaos shares are held by institutional investors. 41.0% of Danaos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Danaos beats COSCO SHIPPING 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 COSCO SHIPPING
COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.
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