Navigator (NYSE:NVGS – Get Free Report) and Performance Shipping (NASDAQ:PSHG – Get Free Report) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
Navigator has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Performance Shipping has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500.
Earnings & Valuation
This table compares Navigator and Performance Shipping”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Navigator | $564.28 million | 2.01 | $82.25 million | $1.13 | 13.72 |
| Performance Shipping | $89.61 million | 0.23 | $69.41 million | $1.50 | 1.09 |
Institutional and Insider Ownership
19.0% of Navigator shares are owned by institutional investors. Comparatively, 19.9% of Performance Shipping shares are owned by institutional investors. 0.4% of Navigator shares are owned by insiders. Comparatively, 0.4% of Performance Shipping shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Performance Shipping pays an annual dividend of $0.10 per share and has a dividend yield of 6.1%. Navigator pays out 17.7% of its earnings in the form of a dividend. Performance Shipping pays out 6.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Performance Shipping is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Navigator and Performance Shipping, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Navigator | 0 | 0 | 5 | 0 | 3.00 |
| Performance Shipping | 0 | 0 | 1 | 0 | 3.00 |
Navigator presently has a consensus price target of $21.60, suggesting a potential upside of 39.31%. Performance Shipping has a consensus price target of $6.50, suggesting a potential upside of 297.55%. Given Performance Shipping’s higher probable upside, analysts clearly believe Performance Shipping is more favorable than Navigator.
Profitability
This table compares Navigator and Performance Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Navigator | 14.48% | 7.40% | 4.23% |
| Performance Shipping | 65.32% | 23.47% | 19.02% |
Summary
Performance Shipping beats Navigator on 9 of the 15 factors compared between the two stocks.
About Navigator
Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.
About Performance Shipping
Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.
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