Reviewing Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and Danaos (NYSE:DAC)

Danaos (NYSE:DAC) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Dividends

Danaos pays an annual dividend of $4.00 per share and has a dividend yield of 2.7%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.3%. Danaos pays out 13.5% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 19.6% 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. Danaos has increased its dividend for 3 consecutive years. Danaos is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Danaos and Nippon Yusen Kabushiki Kaisha”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$1.04 billion	2.62	$494.61 million	$29.55	5.09
Nippon Yusen Kabushiki Kaisha	$16.10 billion	1.06	$1.40 billion	$0.97	8.69

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Danaos and Nippon Yusen Kabushiki Kaisha, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	0	0	3	4.00
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Volatility and Risk

Danaos has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

19.0% of Danaos shares are held by institutional investors. 41.0% of Danaos shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Danaos and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaos	51.26%	13.20%	10.08%
Nippon Yusen Kabushiki Kaisha	11.36%	7.68%	4.57%

Summary

Danaos beats Nippon Yusen Kabushiki Kaisha on 13 of the 16 factors compared between the two stocks.

About Danaos

Danaos Corporation is an international owner and operator of containerships that charters its vessels to major liner companies. Its ships support global cargo transportation, while the company provides vessel operations and technical management services. Founded in 1972, Danaos has grown from a family shipping business into a major independent containership owner. It has also expanded into dry bulk shipping, with vessels serving the seaborne transport of commodities. Headquartered in Piraeus, Greece, Danaos serves customers involved in international trade across global shipping routes.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha, commonly known as NYK Line, is a Japanese transportation and logistics company headquartered in Tokyo. Founded in 1885, it has a long history in maritime shipping and serves customers through a global network of operations. The company transports a range of cargo by sea, including automobiles, dry-bulk commodities, crude oil, and liquefied natural gas. Its activities also include logistics and related services, such as supply-chain support and freight transportation.