Castor Maritime Vs. Danaos: Which Shipping Stock Is A Better Buy?

Recent Financial Results

CTRM’s revenue increased 54.3% year-over-year to $4.40 million for the fourth quarter, ended December 31, 2020. The company’s net loss came in at $0.80 million, which represents a 245.8% year-over-year decrease. Its EPS declined 105% from the prior-year quarter to $0.01.

For the first quarter, ended March 31, 2021, DAC’s operating income came in at $132.12 million, up 24.4% year-over-year. The company’s net income increased 920.3% from the same period last year to $296.80 million. Its EPS came in at $14.50, which represents a 1,136.8% year-over-year rise.

Profitability

DAC’s $487.52 million trailing-12-month revenue is much higher than CTRM’s $12.49 million. Furthermore, DAC is more profitable, with a 70.9% gross profit margin versus CTRM’s 36.7%.

Also, DAC’s ROA and EBIT margins of 4.51% and 43.83%, respectively, compare favorably with CTRM’s 0.54% and 3.62%.

Valuation

In terms of trailing-12-month EV/S, CTRM is currently trading at 31.34x, 81% higher than DAC’s 5.96x. In terms of trailing-12-month EV/EBITDA, CTRM’s 177.67x is 94.83% higher than DAC’s 9.18x.

So, DAC is the more affordable stock.

POWR Ratings

CTRM has an overall F rating, which equates to a Strong Sell in our proprietary POWR Ratings system. However, DAC has an overall B rating, which represents a Buy. The POWR Ratings are calculated by considering 118 different factors with the weighting of each optimized to improve overall performance.

CTRM has a D grade for Quality. This is justified by its negative value for trailing-12-month return on total assets. DAC, in contrast, has a B grade for Quality. Its 12.94% trailing-12-month return on total assets is 227.3% higher than the 3.95% industry average.

CTRM has a C grade for Momentum, which is consistent with its 64.9% loss over the past three months and 11.1% decline over the past month. DAC has a B grade for Momentum, in sync with the company’s 59.8% returns over the past three months and 22.1% gains over the past month.

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Anne Davis 1 month ago Member's comment

Really not a fan of $CTRM.