Danaos (NYSE:DAC) & COSCO SHIPPING (OTCMKTS:CICOY) Financial Contrast

Danaos (NYSE:DAC) and COSCO SHIPPING (OTCMKTS:CICOY) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Danaos and COSCO SHIPPING’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaos	49.85%	13.38%	10.42%
COSCO SHIPPING	N/A	N/A	N/A

Risk and Volatility

Danaos has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, COSCO SHIPPING has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Danaos and COSCO SHIPPING, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaos	0	1	2	1	3.00
COSCO SHIPPING	2	2	0	0	1.50

Danaos presently has a consensus target price of $105.00, indicating a potential downside of 20.88%. Given Danaos’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Danaos is more favorable than COSCO SHIPPING.

Institutional & Insider Ownership

19.0% of Danaos shares are held by institutional investors. 41.0% of Danaos 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.

Dividends

Danaos pays an annual dividend of $3.60 per share and has a dividend yield of 2.7%. COSCO SHIPPING pays an annual dividend of $0.57 per share and has a dividend yield of 5.9%. Danaos pays out 13.4% of its earnings in the form of a dividend. Danaos has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Danaos and COSCO SHIPPING”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaos	$1.04 billion	2.32	$494.61 million	$26.78	4.96
COSCO SHIPPING	$30.54 billion	0.99	$4.29 billion	N/A	N/A

COSCO SHIPPING has higher revenue and earnings than Danaos.

Summary

Danaos beats COSCO SHIPPING on 12 of the 16 factors compared between the two stocks.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005. Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.

About COSCO SHIPPING

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.