Analyzing Safe Bulkers (NYSE:SB) and EuroDry (NASDAQ:EDRY)

EuroDry (NASDAQ:EDRY) and Safe Bulkers (NYSE:SB) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Volatility & Risk

EuroDry has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Safe Bulkers has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares EuroDry and Safe Bulkers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroDry	15.02%	8.77%	4.34%
Safe Bulkers	28.29%	9.63%	5.77%

Valuation and Earnings

This table compares EuroDry and Safe Bulkers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$62.27 million	2.64	-$4.26 million	$3.31	17.35
Safe Bulkers	$275.74 million	3.39	$38.56 million	$0.78	11.78

Safe Bulkers has higher revenue and earnings than EuroDry. Safe Bulkers 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 summary of current ratings and recommmendations for EuroDry and Safe Bulkers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	0	2	1	2.75
Safe Bulkers	0	2	1	0	2.33

EuroDry presently has a consensus target price of $23.50, suggesting a potential downside of 59.08%. Safe Bulkers has a consensus target price of $6.00, suggesting a potential downside of 34.71%. Given Safe Bulkers’ higher possible upside, analysts clearly believe Safe Bulkers is more favorable than EuroDry.

Institutional and Insider Ownership

2.4% of EuroDry shares are held by institutional investors. Comparatively, 21.7% of Safe Bulkers shares are held by institutional investors. 51.4% of EuroDry shares are held by company insiders. Comparatively, 40.3% of Safe Bulkers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Safe Bulkers beats EuroDry on 9 of the 15 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

About Safe Bulkers

Safe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. The company has a fleet of 47 drybulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its fleet consists of 10 Panamax class vessels, 11 Kamsarmax class vessels, 18 post-Panamax class vessels, and 8 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.