EuroDry (NASDAQ:EDRY) versus Danaos (NYSE:DAC) Financial Analysis

EuroDry (NASDAQ:EDRY) and Danaos (NYSE:DAC) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Institutional and Insider Ownership

2.4% of EuroDry shares are held by institutional investors. Comparatively, 19.0% of Danaos shares are held by institutional investors. 51.4% of EuroDry shares are held by company insiders. Comparatively, 41.0% of Danaos shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares EuroDry and Danaos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$52.26 million	1.09	-$4.26 million	($1.57)	-12.56
Danaos	$1.04 billion	1.97	$494.61 million	$26.78	4.22

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EuroDry and Danaos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	0	1	1	2.67
Danaos	0	1	2	0	2.67

EuroDry currently has a consensus target price of $23.50, indicating a potential upside of 19.17%. Danaos has a consensus target price of $105.00, indicating a potential downside of 7.14%. Given EuroDry’s higher probable upside, equities analysts clearly believe EuroDry is more favorable than Danaos.

Risk & Volatility

EuroDry has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Danaos has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares EuroDry and Danaos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroDry	-8.16%	-6.83%	-3.31%
Danaos	47.45%	13.31%	10.40%

Summary

Danaos beats EuroDry on 11 of the 14 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

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.