Head to Head Contrast: Ardmore Shipping (NYSE:ASC) & Seacor (NYSE:CKH)

Ardmore Shipping (NYSE:ASC) and Seacor (NYSE:CKH) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Ardmore Shipping has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Seacor has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ardmore Shipping and Seacor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardmore Shipping $210.18 million 1.40 -$42.94 million ($1.04) -8.58
Seacor $835.75 million 1.12 $58.15 million $1.81 25.69

Seacor has higher revenue and earnings than Ardmore Shipping. Ardmore Shipping is trading at a lower price-to-earnings ratio than Seacor, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Ardmore Shipping and Seacor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardmore Shipping 0 2 1 0 2.33
Seacor 0 0 0 0 N/A

Ardmore Shipping presently has a consensus price target of $8.75, indicating a potential downside of 1.91%. Given Ardmore Shipping’s higher probable upside, research analysts clearly believe Ardmore Shipping is more favorable than Seacor.

Profitability

This table compares Ardmore Shipping and Seacor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardmore Shipping -21.50% -7.82% -3.29%
Seacor 4.12% 4.71% 2.60%

Insider & Institutional Ownership

86.5% of Ardmore Shipping shares are owned by institutional investors. Comparatively, 84.6% of Seacor shares are owned by institutional investors. 10.3% of Seacor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Seacor beats Ardmore Shipping on 8 of the 13 factors compared between the two stocks.

About Ardmore Shipping

Ardmore Shipping Corporation, together with its subsidiaries, engages in the seaborne transportation of petroleum products and chemicals worldwide. As of January 31, 2019, the company operated a fleet of 27 double-hulled product and chemical tankers, including 21 Eco-design and 6 Eco-mod vessels. It serves oil majors, oil companies, oil and chemical traders, and chemical companies. The company was founded in 2010 and is based in Pembroke, Bermuda.

About Seacor

SEACOR Holdings Inc. engages in transportation and logistics, risk management consultancy, and other businesses in the United States and internationally. The company operates through Ocean Transportation & Logistics Services, Inland Transportation & Logistics Services, Witt O'Brien's, and Other segments. The Ocean Transportation & Logistics Services segment owns and operates a diversified fleet of bulk transportation, port and infrastructure, and logistics assets. It operates carriers for the United States coastwise trade of crude oil, petroleum, and chemical products; and dry bulk vessels. This segment provides deep-sea vessels docking, ocean towing, and oil terminal support and bunkering services; liner, short-sea, rail car, and project cargo transportation and logistics solutions; door-to-door solutions; and technical ship management services, as well as operates pure car/truck carriers. The Inland Transportation & Logistics Services segment offers river transportation equipment for moving agricultural and industrial commodities and containers, and petroleum products; and owns and operates multi-modal terminal facilities, barge fleeting locations, and harbor towboats. It also provides management services related to barge and towboat operations. The Witt O'Brien's segment provides crisis and emergency management services for the public and private sectors. It serves markets in the areas of critical national infrastructure, including government, energy, transportation, healthcare, and education. The Other segment is involved in the provision of solutions that delivers clean fuel to end users displacing legacy petroleum-based fuels; lending and leasing activities; and agricultural commodity trading and logistics business. SEACOR Holdings Inc. was founded in 1989 and is based in Fort Lauderdale, Florida.

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