Head to Head Review: Star Bulk Carriers (NASDAQ:SBLK) versus Cool (NYSE:CLCO)

Star Bulk Carriers (NASDAQ:SBLK) and Cool (NYSE:CLCO) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares Star Bulk Carriers and Cool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Bulk Carriers	10.98%	4.97%	3.03%
Cool	N/A	N/A	N/A

Volatility & Risk

Star Bulk Carriers has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Cool has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares Star Bulk Carriers and Cool”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Bulk Carriers	$1.13 billion	1.82	$304.65 million	$1.05	16.68
Cool	$338.50 million	1.53	$98.14 million	$0.68	14.18

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

Institutional and Insider Ownership

33.9% of Star Bulk Carriers shares are owned by institutional investors. Comparatively, 20.7% of Cool shares are owned by institutional investors. 0.9% of Star Bulk Carriers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Star Bulk Carriers and Cool, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Bulk Carriers	0	3	1	0	2.25
Cool	0	3	0	0	2.00

Star Bulk Carriers currently has a consensus price target of $21.10, suggesting a potential upside of 20.50%. Given Star Bulk Carriers’ stronger consensus rating and higher possible upside, research analysts clearly believe Star Bulk Carriers is more favorable than Cool.

Dividends

Star Bulk Carriers pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Cool pays an annual dividend of $0.15 per share and has a dividend yield of 1.6%. Star Bulk Carriers pays out 19.0% 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

Star Bulk Carriers beats Cool on 15 of the 16 factors compared between the two stocks.

About Star Bulk Carriers

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of bulk commodities, including iron ores, minerals and grains, bauxite, fertilizers, and steel products. As of December 31, 2023, the company owned a fleet of 116 dry bulk vessels with combined carrying capacity of 13.1 million deadweight tonnage (dwt) consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt. Star Bulk Carriers Corp. was incorporated in 2006 and is based in Marousi, Greece.

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.