Safe Bulkers (NYSE: SB) and Golden Ocean Group (NASDAQ:GOGL) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Safe Bulkers and Golden Ocean Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safe Bulkers 1 4 1 0 2.00
Golden Ocean Group 0 1 6 0 2.86

Safe Bulkers presently has a consensus target price of $3.30, indicating a potential downside of 4.35%. Golden Ocean Group has a consensus target price of $11.33, indicating a potential upside of 30.57%. Given Golden Ocean Group’s stronger consensus rating and higher probable upside, analysts plainly believe Golden Ocean Group is more favorable than Safe Bulkers.

Valuation & Earnings

This table compares Safe Bulkers and Golden Ocean Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Safe Bulkers $109.77 million 3.19 -$55.96 million ($0.19) -18.16
Golden Ocean Group $257.81 million 4.72 -$127.71 million ($0.21) -41.33

Safe Bulkers has higher earnings, but lower revenue than Golden Ocean Group. Golden Ocean Group is trading at a lower price-to-earnings ratio than Safe Bulkers, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

19.8% of Safe Bulkers shares are owned by institutional investors. Comparatively, 25.0% of Golden Ocean Group shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Safe Bulkers and Golden Ocean Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safe Bulkers -2.01% -2.10% -1.01%
Golden Ocean Group -5.79% -1.74% -0.89%

Risk & Volatility

Safe Bulkers has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500. Comparatively, Golden Ocean Group has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.

Summary

Golden Ocean Group beats Safe Bulkers on 9 of the 13 factors compared between the two stocks.

Safe Bulkers Company Profile

Safe Bulkers, Inc. is a holding company. The Company’s principal business is the acquisition, ownership and operation of drybulk vessels. The Company’s vessels operate across the world, carrying drybulk cargo for the consumers of marine drybulk transportation services. The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along shipping routes across the world. As of February 17, 2017 the Company’s fleet included 38 vessels, of which 14 are Panamax class vessels, nine are Kamsarmax class vessels, 12 are Post-Panamax class vessels and three are Capesize class vessels, with an aggregate carrying capacity of 3,421,800 deadweight tonnage (dwt). The Company’s fleet of Post-Panamax vessels includes Marina, Xenia, Sophia, Eleni, Martine, Andreas K, Panayiota K, Venus Heritage, Venus History, Venus Horizon and Troodos Sun. Its fleet of Capesize vessels includes Kanaris, Pelopidas and Lake Despina.

Golden Ocean Group Company Profile

Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.

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