Kawasaki Kisen Kaisha (OTCMKTS:KAIKY) and Costamare (NYSE:CMRE) Financial Analysis

Costamare (NYSE:CMRE) and Kawasaki Kisen Kaisha (OTCMKTS:KAIKY) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

58.1% of Costamare shares are held by institutional investors. 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.

Dividends

Costamare pays an annual dividend of $0.50 per share and has a dividend yield of 3.2%. Kawasaki Kisen Kaisha pays an annual dividend of $20.55 per share and has a dividend yield of 114.8%. Costamare pays out 19.0% of its earnings in the form of a dividend. Kawasaki Kisen Kaisha pays out 27.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Costamare and Kawasaki Kisen Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Costamare	39.66%	15.11%	8.47%
Kawasaki Kisen Kaisha	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Costamare and Kawasaki Kisen Kaisha, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Costamare	0	3	0	1	2.50
Kawasaki Kisen Kaisha	0	0	0	0	0.00

Costamare presently has a consensus target price of $12.00, suggesting a potential downside of 22.08%. Given Costamare’s stronger consensus rating and higher possible upside, equities analysts clearly believe Costamare is more favorable than Kawasaki Kisen Kaisha.

Earnings & Valuation

This table compares Costamare and Kawasaki Kisen Kaisha”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Costamare	$877.90 million	2.11	$364.58 million	$2.63	5.86
Kawasaki Kisen Kaisha	N/A	N/A	N/A	$73.86	0.24

Costamare has higher revenue and earnings than Kawasaki Kisen Kaisha. Kawasaki Kisen Kaisha is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.

Summary

Costamare beats Kawasaki Kisen Kaisha on 10 of the 12 factors compared between the two stocks.

About Costamare

Costamare Inc. owns and operates containerships and dry bulk vessels that are chartered to liner companies providing transportation of cargoes worldwide. As of March 19, 2024, it had a fleet of fleet of 68 containerships and 37 dry bulk vessels. The company was founded in 1974 and is based in Monaco.

About Kawasaki Kisen Kaisha

Kawasaki Kisen Kaisha, Ltd. provides marine, land, and air transportation services in Japan, the United States, Europe, Asia, and internationally. It offers dry bulk carrier, car carrier, liquefied natural gas carrier, crude oil tanker, containerships, and liquefied petroleum gas transportation services. The company also engages in the offshore and energy development business. In addition, it operates container terminals; and offers warehousing and cargo consolidation services. Kawasaki Kisen Kaisha, Ltd. was founded in 1919 and is headquartered in Tokyo, Japan.