EuroDry (NASDAQ:EDRY – Get Free Report) and Global Ship Lease (NYSE:GSL – Get Free Report) are both small-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Institutional and Insider Ownership
2.4% of EuroDry shares are held by institutional investors. Comparatively, 50.1% of Global Ship Lease shares are held by institutional investors. 51.4% of EuroDry shares are held by company insiders. Comparatively, 7.4% of Global Ship Lease shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares EuroDry and Global Ship Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EuroDry | -0.55% | -0.88% | -0.43% |
| Global Ship Lease | 50.01% | 21.11% | 13.42% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EuroDry | $52.26 million | 1.22 | -$4.26 million | ($0.13) | -170.08 |
| Global Ship Lease | $757.04 million | 1.91 | $416.45 million | $10.53 | 3.82 |
Global Ship Lease has higher revenue and earnings than EuroDry. EuroDry is trading at a lower price-to-earnings ratio than Global Ship Lease, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
EuroDry has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Global Ship Lease has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for EuroDry and Global Ship Lease, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EuroDry | 1 | 0 | 1 | 1 | 2.67 |
| Global Ship Lease | 1 | 0 | 3 | 1 | 2.80 |
EuroDry currently has a consensus target price of $23.50, suggesting a potential upside of 6.29%. Global Ship Lease has a consensus target price of $46.50, suggesting a potential upside of 15.58%. Given Global Ship Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Global Ship Lease is more favorable than EuroDry.
Summary
Global Ship Lease beats EuroDry on 13 of the 14 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 Global Ship Lease
Global Ship Lease, Inc., together with its subsidiaries, engages in owning and chartering of containerships under fixed-rate charters to container shipping companies worldwide. As of March 11, 2024, it owned 68 mid-sized and smaller containerships, ranging from 2,207 to 11,040 twenty-foot equivalent unit (TEU), with an aggregate capacity of 375,406 TEU. The company was founded in 2007 and is based in Athens, Greece.
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