Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) versus Danaos (NYSE:DAC) Critical Comparison

Danaos (NYSE:DAC) and Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Danaos and Nippon Yusen Kabushiki Kaisha, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	0	1	0	3.00
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00

Danaos presently has a consensus price target of $105.00, indicating a potential upside of 20.72%. Given Danaos’ stronger consensus rating and higher possible upside, equities analysts plainly believe Danaos is more favorable than Nippon Yusen Kabushiki Kaisha.

Dividends

Danaos pays an annual dividend of $3.40 per share and has a dividend yield of 3.9%. Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.12 per share and has a dividend yield of 1.7%. Danaos pays out 14.0% of its earnings in the form of a dividend. Nippon Yusen Kabushiki Kaisha pays out 8.6% 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. Danaos has increased its dividend for 3 consecutive years. Danaos is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Danaos has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Nippon Yusen Kabushiki Kaisha has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

19.0% of Danaos shares are held by institutional investors. 41.0% of Danaos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Danaos and Nippon Yusen Kabushiki Kaisha”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$1.01 billion	1.63	$505.07 million	$24.36	3.57
Nippon Yusen Kabushiki Kaisha	$17.00 billion	0.88	$3.15 billion	$1.40	4.95

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Danaos. Danaos is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Danaos and Nippon Yusen Kabushiki Kaisha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaos	46.33%	14.66%	11.65%
Nippon Yusen Kabushiki Kaisha	18.49%	15.81%	10.67%

Summary

Danaos beats Nippon Yusen Kabushiki Kaisha on 12 of the 17 factors compared between the two stocks.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.