Genco Shipping & Trading (NYSE:GNK – Get Free Report) and Diana Shipping (NYSE:DSX – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Volatility & Risk
Genco Shipping & Trading has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Diana Shipping has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Earnings and Valuation
This table compares Genco Shipping & Trading and Diana Shipping”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genco Shipping & Trading | $512.62 million | 2.26 | -$4.37 million | $1.78 | 14.92 |
| Diana Shipping | $213.54 million | 1.41 | $17.83 million | $0.48 | 5.05 |
Diana Shipping has lower revenue, but higher earnings than Genco Shipping & Trading. Diana Shipping is trading at a lower price-to-earnings ratio than Genco Shipping & Trading, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
58.6% of Genco Shipping & Trading shares are owned by institutional investors. Comparatively, 48.7% of Diana Shipping shares are owned by institutional investors. 2.1% of Genco Shipping & Trading shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Genco Shipping & Trading and Diana Shipping, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genco Shipping & Trading | 0 | 2 | 3 | 0 | 2.60 |
| Diana Shipping | 0 | 1 | 0 | 0 | 2.00 |
Genco Shipping & Trading currently has a consensus price target of $29.00, indicating a potential upside of 9.21%. Given Genco Shipping & Trading’s stronger consensus rating and higher possible upside, analysts clearly believe Genco Shipping & Trading is more favorable than Diana Shipping.
Profitability
This table compares Genco Shipping & Trading and Diana Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genco Shipping & Trading | 15.48% | 10.88% | 7.79% |
| Diana Shipping | 27.88% | 7.55% | 3.32% |
Dividends
Genco Shipping & Trading pays an annual dividend of $4.20 per share and has a dividend yield of 15.8%. Diana Shipping pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Genco Shipping & Trading pays out 236.0% 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 pays out 8.3% of its earnings in the form of a dividend.
Summary
Genco Shipping & Trading beats Diana Shipping on 13 of the 16 factors compared between the two stocks.
About Genco Shipping & Trading
Genco Shipping & Trading is an international drybulk shipping company that owns and operates vessels carrying commodities for customers around the world. Its fleet includes large Capesize ships and smaller Supramax and Ultramax vessels, serving a range of drybulk cargo needs. The company transports commodities such as iron ore, coal, grain, bauxite, steel products and fertilizers. Its vessels operate on global trade routes, connecting commodity producers and markets across multiple regions. Founded in 2004, Genco is headquartered in New York City.
About Diana Shipping
Diana Shipping Inc. (NYSE: DSX) is a global shipping company that owns and operates dry bulk vessels. Its fleet transports major and minor bulk commodities, including iron ore, grain, coal, and other raw materials used in industrial and commercial supply chains. The company primarily operates Capesize, Panamax, Kamsarmax, Post-Panamax, and Ultramax vessels. These ships are typically employed under time charter, voyage charter, or other commercial arrangements with customers around the world, serving international trade routes across the Atlantic, Pacific, and other major maritime regions.
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