Comparing EuroDry (EDRY) & Golar LNG (GLNG)

EuroDry (NASDAQ:EDRY) and Golar LNG (NASDAQ:GLNG) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares EuroDry and Golar LNG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EuroDry N/A N/A N/A
Golar LNG -53.74% -2.03% -0.77%

Valuation and Earnings

This table compares EuroDry and Golar LNG’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EuroDry $24.52 million 0.72 $1.11 million $0.24 32.67
Golar LNG $430.60 million 4.45 -$231.43 million ($0.38) -49.76

EuroDry has higher earnings, but lower revenue than Golar LNG. Golar LNG is trading at a lower price-to-earnings ratio than EuroDry, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for EuroDry and Golar LNG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EuroDry 0 0 2 0 3.00
Golar LNG 0 0 12 0 3.00

EuroDry currently has a consensus price target of $13.25, suggesting a potential upside of 69.01%. Golar LNG has a consensus price target of $34.20, suggesting a potential upside of 80.86%. Given Golar LNG’s higher possible upside, analysts clearly believe Golar LNG is more favorable than EuroDry.

Institutional and Insider Ownership

0.0% of EuroDry shares are owned by institutional investors. Comparatively, 74.9% of Golar LNG shares are owned by institutional investors. 0.0% of Golar LNG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Golar LNG pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. EuroDry does not pay a dividend. Golar LNG pays out -157.9% of its earnings in the form of a dividend.

Summary

Golar LNG beats EuroDry on 8 of the 14 factors compared between the two stocks.

EuroDry Company Profile

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks comprising bauxite, phosphate, and fertilizers. As of November 15, 2018, it operated a fleet of six vessels, including one Ultramax, two Kamsarmax, and three Panamax drybulk carriers with a cargo capacity of 453,086 deadweight tons. The company was founded in 2018 and is based in Maroussi, Greece.

Golar LNG Company Profile

Golar LNG Limited, a midstream liquefied natural gas (LNG) company, engages in the transportation, regasification, and liquefaction of LNG. It operates through three segments: Vessel operations, Floating Liquefaction Natural Gas Vessel (FLNG), and Power. The company engages in the acquisition, ownership, operation, and chartering of LNG carriers and floating storage regasification units (FSRUs); and the development of LNG projects. As of December 31, 2018, Golar LNG Limited, together with Golar LNG Partners LP and Golar Power Limited, owned and operated a fleet of 18 LNG carriers, 8 FSRUs, and 1 FLNG. The company was founded in 1946 and is headquartered in Hamilton, Bermuda.

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