Capital Product Partners (NASDAQ:CPLP – Get Rating) and Performance Shipping (NASDAQ:PSHG – Get Rating) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Insider & Institutional Ownership
42.0% of Capital Product Partners shares are held by institutional investors. Comparatively, 4.3% of Performance Shipping shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Capital Product Partners and Performance Shipping’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital Product Partners | 52.58% | 11.32% | 4.52% |
| Performance Shipping | -26.60% | -10.67% | -6.46% |
Volatility and Risk
Capital Product Partners has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Performance Shipping has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.
Earnings and Valuation
This table compares Capital Product Partners and Performance Shipping’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital Product Partners | $184.66 million | 1.65 | $98.18 million | $5.11 | 3.14 |
| Performance Shipping | $36.49 million | 0.39 | -$9.71 million | ($1.94) | -1.43 |
Capital Product Partners has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Capital Product Partners, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Capital Product Partners and Performance Shipping, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital Product Partners | 0 | 0 | 2 | 0 | 3.00 |
| Performance Shipping | 0 | 0 | 1 | 0 | 3.00 |
Capital Product Partners currently has a consensus price target of $17.50, suggesting a potential upside of 9.03%. Performance Shipping has a consensus price target of $6.00, suggesting a potential upside of 116.61%. Given Performance Shipping’s higher possible upside, analysts clearly believe Performance Shipping is more favorable than Capital Product Partners.
Summary
Capital Product Partners beats Performance Shipping on 11 of the 12 factors compared between the two stocks.
Capital Product Partners Company Profile (Get Rating)
Capital Product Partners L.P., a shipping company, provides marine transportation services in Greece. Its vessels transports a range of dry cargoes and containerized goods under short-term voyage charters, and medium to long-term time and bareboat charters. As of April 26, 2021, the company owned 17 vessels, including thirteen Neo-Panamax container vessels, three Panamax container vessels, and one Capesize bulk carrier. Capital GP L.L.C. serves as the general partner of the company. The company was incorporated in 2007 and is headquartered in Piraeus, Greece.
Performance Shipping Company Profile (Get Rating)
Performance Shipping Inc., through its subsidiaries, provides shipping transportation services through its ownership of tanker vessels worldwide. As of April 7, 2021, it owned and operated five Aframax tanker vessels with a combined carrying capacity of 546,094 dwt. The company was incorporated in 2010 and is based in Athens, Greece.
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