Seanergy Maritime (NASDAQ:SHIP) & A.P. Moller-Maersk (OTCMKTS:AMKBY) Financial Analysis

A.P. Moller-Maersk (OTCMKTS:AMKBY) and Seanergy Maritime (NASDAQ:SHIP) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares A.P. Moller-Maersk and Seanergy Maritime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A.P. Moller-Maersk	4.08%	4.38%	2.82%
Seanergy Maritime	30.68%	21.87%	10.20%

Valuation & Earnings

This table compares A.P. Moller-Maersk and Seanergy Maritime”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A.P. Moller-Maersk	$53.99 billion	1.03	$2.73 billion	$0.78	22.46
Seanergy Maritime	$158.10 million	2.50	$21.24 million	$2.86	6.62

A.P. Moller-Maersk has higher revenue and earnings than Seanergy Maritime. Seanergy Maritime is trading at a lower price-to-earnings ratio than A.P. Moller-Maersk, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for A.P. Moller-Maersk and Seanergy Maritime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A.P. Moller-Maersk	5	7	0	1	1.77
Seanergy Maritime	0	0	3	1	3.25

Seanergy Maritime has a consensus price target of $25.00, suggesting a potential upside of 32.14%. Given Seanergy Maritime’s stronger consensus rating and higher possible upside, analysts plainly believe Seanergy Maritime is more favorable than A.P. Moller-Maersk.

Insider and Institutional Ownership

29.4% of Seanergy Maritime shares are held by institutional investors. 4.7% of Seanergy Maritime shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

A.P. Moller-Maersk has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Seanergy Maritime has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Dividends

A.P. Moller-Maersk pays an annual dividend of $0.19 per share and has a dividend yield of 1.1%. Seanergy Maritime pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. A.P. Moller-Maersk pays out 24.4% of its earnings in the form of a dividend. Seanergy Maritime pays out 28.0% 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

Seanergy Maritime beats A.P. Moller-Maersk on 12 of the 16 factors compared between the two stocks.

About A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.

About Seanergy Maritime

Seanergy Maritime Holdings Corp., a shipping company, provides seaborne transportation of dry bulk commodities worldwide. It operates a fleet of 16 Capesize dry bulk vessels and one Newcastlemax dry bulk vessel with a cargo-carrying capacity of approximately 3,054,820 dwt. The company was formerly known as Seanergy Merger Corp. and changed its name to Seanergy Maritime Holdings Corp. in July 2008. Seanergy Maritime Holdings Corp. was incorporated in 2008 and is based in Glyfada, Greece.