DAC vs. FRO, STNG, TRMD, ZIM, SBLK, CDLR, LPG, SFL, DHT, and CMRE
Should you be buying Danaos stock or one of its competitors? The main competitors of Danaos include Frontline (FRO), Scorpio Tankers (STNG), TORM (TRMD), ZIM Integrated Shipping Services (ZIM), Star Bulk Carriers (SBLK), Cadeler A/S (CDLR), Dorian LPG (LPG), SFL (SFL), DHT (DHT), and Costamare (CMRE). These companies are all part of the "deep sea foreign transportation of freight" industry.
Frontline (NYSE:FRO) and Danaos (NYSE:DAC) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, media sentiment, risk, analyst recommendations, profitability, institutional ownership and community ranking.
22.7% of Frontline shares are owned by institutional investors. Comparatively, 19.0% of Danaos shares are owned by institutional investors. 48.1% of Frontline shares are owned by insiders. Comparatively, 41.0% of Danaos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Frontline currently has a consensus target price of $26.10, suggesting a potential downside of 7.84%. Danaos has a consensus target price of $105.00, suggesting a potential upside of 8.50%. Given Frontline's stronger consensus rating and higher possible upside, analysts plainly believe Danaos is more favorable than Frontline.
In the previous week, Danaos had 4 more articles in the media than Frontline. MarketBeat recorded 21 mentions for Danaos and 17 mentions for Frontline. Danaos' average media sentiment score of 0.38 beat Frontline's score of 0.12 indicating that Frontline is being referred to more favorably in the media.
Frontline has higher revenue and earnings than Danaos. Danaos is trading at a lower price-to-earnings ratio than Frontline, indicating that it is currently the more affordable of the two stocks.
Frontline has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Danaos has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Danaos has a net margin of 59.04% compared to Danaos' net margin of 32.94%. Danaos' return on equity of 23.42% beat Frontline's return on equity.
Frontline pays an annual dividend of $1.48 per share and has a dividend yield of 5.2%. Danaos pays an annual dividend of $3.20 per share and has a dividend yield of 3.3%. Frontline pays out 51.7% of its earnings in the form of a dividend. Danaos pays out 10.9% 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. Frontline has raised its dividend for 1 consecutive years and Danaos has raised its dividend for 2 consecutive years.
Frontline received 266 more outperform votes than Danaos when rated by MarketBeat users. Likewise, 58.25% of users gave Frontline an outperform vote while only 56.10% of users gave Danaos an outperform vote.
Summary
Frontline beats Danaos on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DAC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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