Head-To-Head Contrast: Danaos (NYSE:DAC) versus Dorian LPG (NYSE:LPG)

Danaos (NYSE:DAC) and Dorian LPG (NYSE:LPG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Danaos and Dorian LPG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Danaos $458.73 million 0.37 -$32.94 million $12.32 0.89
Dorian LPG $158.03 million 4.46 -$50.95 million N/A N/A

Danaos has higher revenue and earnings than Dorian LPG.

Analyst Ratings

This is a breakdown of current recommendations for Danaos and Dorian LPG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Danaos 0 0 0 0 N/A
Dorian LPG 0 0 2 0 3.00

Dorian LPG has a consensus target price of $15.65, indicating a potential upside of 21.13%. Given Dorian LPG’s higher probable upside, analysts plainly believe Dorian LPG is more favorable than Danaos.

Volatility and Risk

Danaos has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Dorian LPG has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares Danaos and Dorian LPG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Danaos -18.46% 19.88% 5.54%
Dorian LPG 10.16% 4.52% 2.56%

Insider & Institutional Ownership

22.1% of Danaos shares are owned by institutional investors. Comparatively, 58.4% of Dorian LPG shares are owned by institutional investors. 26.8% of Dorian LPG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Dorian LPG beats Danaos on 7 of the 12 factors compared between the two stocks.

Danaos Company Profile

Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2019, it had a fleet of 55 containerships aggregating 327,616 twenty foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1972 and is based in Piraeus, Greece.

Dorian LPG Company Profile

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide. It owns and operates very large gas carriers (VLGCs). As of June 26, 2018, its fleet consisted of 22 VLGCs with carrying capacity of approximately 1.8 million cubic meters. The company was founded in 2013 and is headquartered in Stamford, Connecticut.

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