EuroDry (NASDAQ:EDRY – Get Free Report) and Safe Bulkers (NYSE:SB – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for EuroDry and Safe Bulkers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EuroDry | 1 | 0 | 2 | 1 | 2.75 |
| Safe Bulkers | 0 | 2 | 1 | 0 | 2.33 |
EuroDry presently has a consensus target price of $23.50, suggesting a potential downside of 59.08%. Safe Bulkers has a consensus target price of $6.00, suggesting a potential downside of 34.71%. Given Safe Bulkers’ higher probable upside, analysts clearly believe Safe Bulkers is more favorable than EuroDry.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EuroDry | $62.27 million | 2.64 | -$4.26 million | $3.31 | 17.35 |
| Safe Bulkers | $275.74 million | 3.39 | $38.56 million | $0.78 | 11.78 |
Safe Bulkers has higher revenue and earnings than EuroDry. Safe Bulkers is trading at a lower price-to-earnings ratio than EuroDry, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
2.4% of EuroDry shares are owned by institutional investors. Comparatively, 21.7% of Safe Bulkers shares are owned by institutional investors. 51.4% of EuroDry shares are owned by insiders. Comparatively, 40.3% of Safe Bulkers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares EuroDry and Safe Bulkers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EuroDry | 15.02% | 8.77% | 4.34% |
| Safe Bulkers | 28.29% | 9.63% | 5.77% |
Risk & Volatility
EuroDry has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Safe Bulkers has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Summary
Safe Bulkers beats EuroDry on 9 of the 15 factors compared between the two stocks.
About EuroDry
EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.
About Safe Bulkers
Safe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. The company has a fleet of 47 drybulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its fleet consists of 10 Panamax class vessels, 11 Kamsarmax class vessels, 18 post-Panamax class vessels, and 8 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.
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