Comparing A.P. Moller-Maersk (OTCMKTS:AMKBY) & Cool (NYSE:CLCO)

A.P. Moller-Maersk (OTCMKTS:AMKBY) and Cool (NYSE:CLCO) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for A.P. Moller-Maersk and Cool, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A.P. Moller-Maersk	4	2	0	1	1.71
Cool	0	3	0	0	2.00

Volatility and Risk

A.P. Moller-Maersk has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Cool has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares A.P. Moller-Maersk and Cool”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A.P. Moller-Maersk	$55.48 billion	0.56	$6.11 billion	$2.19	4.46
Cool	$338.50 million	1.53	$98.14 million	$0.68	14.17

A.P. Moller-Maersk has higher revenue and earnings than Cool. A.P. Moller-Maersk is trading at a lower price-to-earnings ratio than Cool, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

20.7% of Cool shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares A.P. Moller-Maersk and Cool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A.P. Moller-Maersk	12.11%	12.33%	8.09%
Cool	N/A	N/A	N/A

Dividends

A.P. Moller-Maersk pays an annual dividend of $0.52 per share and has a dividend yield of 5.3%. Cool pays an annual dividend of $0.15 per share and has a dividend yield of 1.6%. A.P. Moller-Maersk pays out 23.7% of its earnings in the form of a dividend. Cool pays out 22.1% 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.

Summary

A.P. Moller-Maersk beats Cool on 9 of the 14 factors compared between the two stocks.

About A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.

About Cool

Cool Company Ltd. engages in the acquisition, ownership, operation, and chartering of liquefied natural gas carriers (LNGCs). As of December 31, 2023, it owned a fleet of eleven LNGCs, including seven modern tri-fuel diesel electric vessels; two modern 2-stroke and two TFDE vessels; and managed 17 LNGCs and floating storage and regasification units for third parties. The company was founded in 1970 and is based in London, the United Kingdom.