Analyzing Navios Maritime Acquisition (NYSE:NNA) and Scorpio Bulkers (NYSE:SALT)

Scorpio Bulkers (NYSE:SALT) and Navios Maritime Acquisition (NYSE:NNA) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Earnings & Valuation

This table compares Scorpio Bulkers and Navios Maritime Acquisition’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scorpio Bulkers $242.50 million 1.72 -$12.70 million ($0.03) -191.67
Navios Maritime Acquisition $187.95 million 0.63 -$86.37 million ($7.58) -1.01

Scorpio Bulkers has higher revenue and earnings than Navios Maritime Acquisition. Scorpio Bulkers is trading at a lower price-to-earnings ratio than Navios Maritime Acquisition, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Scorpio Bulkers and Navios Maritime Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scorpio Bulkers 9.74% -0.74% -0.38%
Navios Maritime Acquisition -34.93% -13.09% -2.89%

Risk and Volatility

Scorpio Bulkers has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500. Comparatively, Navios Maritime Acquisition has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500.

Dividends

Scorpio Bulkers pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. Navios Maritime Acquisition pays an annual dividend of $1.20 per share and has a dividend yield of 15.7%. Scorpio Bulkers pays out -266.7% of its earnings in the form of a dividend. Navios Maritime Acquisition pays out -15.8% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Scorpio Bulkers and Navios Maritime Acquisition, as provided by MarketBeat.com.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scorpio Bulkers 0 1 3 0 2.75
Navios Maritime Acquisition 0 1 0 0 2.00

Scorpio Bulkers currently has a consensus price target of $8.50, suggesting a potential upside of 46.80%. Given Scorpio Bulkers’ stronger consensus rating and higher probable upside, research analysts plainly believe Scorpio Bulkers is more favorable than Navios Maritime Acquisition.

Insider & Institutional Ownership

34.9% of Scorpio Bulkers shares are owned by institutional investors. Comparatively, 5.0% of Navios Maritime Acquisition shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Scorpio Bulkers beats Navios Maritime Acquisition on 12 of the 15 factors compared between the two stocks.

About Scorpio Bulkers

Scorpio Bulkers Inc., a shipping company, owns and operates dry bulk carriers worldwide. Its vessels transport a range of bulk commodities, including ores, coal, grains, and fertilizers. The company owns and operates 55 vessels, including 54 wholly-owned or finance leased drybulk vessels comprising 17 Kamsarmax vessels and 37 Ultramax vessels; and 1 time chartered-in Ultramax vessel. Scorpio Bulkers Inc. was founded in 2013 and is based in Monaco.

About Navios Maritime Acquisition

Navios Maritime Acquisition Corporation provides marine transportation services worldwide. The company owns a fleet of crude oil, refined petroleum product, and chemical tankers. It charters its vessels to oil companies, refiners, and large vessel operators under long, medium, and short term charters. As of April 2, 2018, the company's fleet consisted of a total of 35 double-hulled tanker vessels aggregating approximately 3.6 million deadweight tons, which included 7 very large crude carrier tankers, 8 Long Range 1 product tankers, 18 Medium Range 2 product tankers, and 2 chemical tankers. Navios Maritime Acquisition Corporation was founded in 2008 and is based in Monaco.

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