Global Ship Lease (NYSE:GSL) and DHT (NYSE:DHT) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Global Ship Lease and DHT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Ship Lease 0 0 1 0 3.00
DHT 0 2 5 0 2.71

Global Ship Lease presently has a consensus price target of $9.00, suggesting a potential upside of 22.02%. DHT has a consensus price target of $6.23, suggesting a potential upside of 5.48%. Given Global Ship Lease’s stronger consensus rating and higher possible upside, research analysts clearly believe Global Ship Lease is more favorable than DHT.

Profitability

This table compares Global Ship Lease and DHT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Ship Lease -28.19% 7.52% 2.29%
DHT -5.17% -1.09% -0.52%

Dividends

DHT pays an annual dividend of $0.32 per share and has a dividend yield of 5.4%. Global Ship Lease does not pay a dividend. DHT pays out -128.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

4.3% of Global Ship Lease shares are owned by institutional investors. Comparatively, 36.4% of DHT shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Global Ship Lease and DHT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Ship Lease $157.10 million 0.47 -$57.36 million $1.76 4.19
DHT $375.94 million 2.24 -$46.93 million ($0.25) -23.64

DHT has higher revenue and earnings than Global Ship Lease. DHT is trading at a lower price-to-earnings ratio than Global Ship Lease, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Global Ship Lease has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, DHT has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

DHT beats Global Ship Lease on 8 of the 15 factors compared between the two stocks.

Global Ship Lease Company Profile

Global Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. As of December 31, 2018, it owned 38 vessels with a total capacity of 200,615 twenty-foot equivalent units. The company is based in London, the United Kingdom.

DHT Company Profile

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Oslo, Norway and Singapore. As of March 18, 2019, it had a fleet of 27 very large crude carriers with a capacity of 8,360,850 deadweight tons. The company was founded in 2005 and is headquartered in Hamilton, Bermuda.

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