Financial Analysis: Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) & Costamare (NYSE:CMRE)

Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY) and Costamare (NYSE:CMRE) are both transportation companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nippon Yusen Kabushiki Kaisha and Costamare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Yusen Kabushiki Kaisha	0	1	0	0	2.00
Costamare	0	3	0	1	2.50

Costamare has a consensus target price of $12.00, indicating a potential downside of 21.85%. Given Costamare’s stronger consensus rating and higher probable upside, analysts plainly believe Costamare is more favorable than Nippon Yusen Kabushiki Kaisha.

Volatility & Risk

Nippon Yusen Kabushiki Kaisha has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Costamare has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Dividends

Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 2.9%. Costamare pays an annual dividend of $0.46 per share and has a dividend yield of 3.0%. Nippon Yusen Kabushiki Kaisha pays out 28.4% of its earnings in the form of a dividend. Costamare pays out 17.2% 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. Costamare is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

58.1% of Costamare shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Nippon Yusen Kabushiki Kaisha and Costamare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Yusen Kabushiki Kaisha	$16.10 billion	0.83	$1.40 billion	$0.67	9.86
Costamare	$877.90 million	2.10	$364.58 million	$2.68	5.73

Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Costamare. Costamare is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nippon Yusen Kabushiki Kaisha and Costamare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Yusen Kabushiki Kaisha	8.73%	5.60%	3.51%
Costamare	39.93%	16.42%	9.07%

Summary

Costamare beats Nippon Yusen Kabushiki Kaisha on 12 of the 15 factors compared between the two stocks.

About Nippon Yusen Kabushiki Kaisha

Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.

About Costamare

Costamare Inc. owns and operates containerships and dry bulk vessels that are chartered to liner companies providing transportation of cargoes worldwide. As of March 19, 2024, it had a fleet of fleet of 68 containerships and 37 dry bulk vessels. The company was founded in 1974 and is based in Monaco.